While real estate investment trusts (REITs) are generally thought of as income-generation instruments, they can also be effective trading vehicles. Take Taubman Centers ( TCO), for instance -- a "channel up" in this $3 billion shopping center operator suggests that we're approaching an ideal buying opportunity. A channel up is perhaps one of the most simple technical patterns out there -- but simplicity is hardly a reason to eschew a highly effective setup. Essentially, a channel up occurs when a stock is in an uptrend, bounded by parallel support and resistance levels. The ideal time to buy is when shares are sitting just above support, primed to move back up toward channel resistance. The key to acting on this trade is to wait for a bounce off of the support level to take place before buying shares. In the case of Taubman, traders will want to see a push above the 50-day moving average before it makes sense to buy this stock. That push is confirmation that the pattern is likely to hold.