Chilean power generation and distribution company Empresa Nacional de Electricidad (EOC - Get Report) holds generation capacity of 13,000 megawatts for customers in Chile, Brazil, Argentina, Colombia and Peru.
Even though the stock -- like many other electric utilities -- has traditionally garnered the attention of income investors, traders should be paying attention to the short-term upside potential in its share price.
At present, shares of EOC are consolidating at trend channel support. That means we're looking for a bounce higher off of the lower blue line that should signal a move back higher to the top of that trend channel. Watch support levels very closely on this trade; if shares fall below the channel, I'd suggest staying away from this stock.
Twitter and become a fan on Facebook. At the time of publication, author had no positions in stocks mentioned Jonas Elmerraji, based out of Baltimore, is the editor and portfolio manager of the Rhino Stock Report, a free investment advisory that returned 15% in 2008. He is a contributor to numerous financial outlets, including Forbes and Investopedia , and has been featured in Investor's Business Daily , in Consumer's Digest and on MSNBC.com.