Chilean power generation and distribution company Empresa Nacional de Electricidad ( EOC) 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.

>>Also: 5 Brazilian Stocks to Watch in 2011

To see these plays in action, check out the Technical Setups for the Week portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

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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.
Jonas Elmerraji 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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