This stock pick is going against the overall trend in the Market, but is showing good enough promise that I’m willing to take the risk.

Technicals

• The AROON is showing a strong uptrend is in place
• The PPO confirms the AROON and shows absolutely no divergence between the indicator and price action
• The Williams %R shows no divergence Either.
• The Williams %R on the daily chart is showing an oversold conidtion

Pattern

The chart pattern combined with the techincals is why I like this trade. A nice double bottom has formed, with a breakout occurring on strong volume. Today, support at the top of the W held up with the 13 day MA acting as further support.

Price Target and Stop

My target of 26.50 for this trade is just above it’s all time high of 26.09

Stop is $20.03, about 3% from a very strong support level.

Fundamentals

Avista is invested in renewable energy sources and provides energy to eastern Washington; an area hot during the summer, and snowy during the winter. They also grew net profits by 75% last quarter.

Last 5 posts by Steve Warshaw

• Crude Oil in Bullish Flag Pattern - November 6th, 2009
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• SP 500 Huge Rally on 3.5% GDP Growth, but No New Highs? - October 29th, 2009
• Crude Oil to Kill the Market Rally, Economy? - October 20th, 2009
• Trading Strategies for a Bulletproof Portfolio - October 17th, 2009