Residential REIT AvalonBay Communities (AVB - Get Report) has been staging an orderly climb in 2012, bouncing in between two parallel trend lines called a channel. That orderly ascent is important -- it provides traders with high probability levels for AVB to hit. As a result, we've got another upside trade in this stock.
The uptrending channel in AvalonBay has been intact since before the start of the year, and shares have been obedient: the stock has bounced off of a trend line nine times over the course of 2012, a number that adds confidence to the strength of the channel. In an uptrending channel, the optimal time to buy comes on a bounce off of support.