Companhia Paranaense de Energia

Another Brazilian setup that's worth looking at right now is Companhia Paranaense de Energia ( ELP), a $7 billion energy stock that owns 18 power plants and nearly 2,000 kilometers of power transmission lines. As with UGP, this stock is setting up a predictable range trade.

Shares of ELP have been trading within an uptrending channel since the beginning of last summer, as shares cycled between trend line resistance at the upside, and trend line support below. Right now, with shares at trend line support, this week could be an ideal entry point for the play given the likelihood of a bounce back to resistance.

With the 50-day moving average sitting right below shares, there's a sort of dual support level in play that significantly reduces the risk of a botched trade -- the 50-day has already acted as strong support in the past for this stock. That said, I'd suggest keeping a stop loss around $24.50.

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