Last up this week is Dominion Resources (D), a large-cap electric utility that's been rallying approximately 17% in the last year. Like many of its industry peers, Dominion pays out a hefty dividend yield (3.89%), but unlike many of them, the firm sports double-digit net margins. Earnings on January 27 should be the next major catalyst for shares.
In the meantime, an uptrending channel is offering a trading opportunity in this stock. While Dominion has been rallying for a while now, that rally has been bounded by trendline support and resistance, dynamic price levels that have put the reigns on Dominion's price action. Now, with shares nearing trendline support, traders could have an optimal opportunity to buy a position in this uptrending issue."Could" is the operative word in that sentence. Trendline support levels do invariably fail, so it's crucial not to be left holding the bag if this one does now. Wait for a bounce higher off of support before taking a position. While waiting will mean sacrificing a couple of points on the trade, it dramatically increases the probability of booking a profit on this stock. To see these plays in action, check out the Technical Setups for the Week portfolio at Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
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.
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