Itron, Inc - ITRI - close 59.83 change -0.17 stop 34.40

Target(s): 63.75, 65.00
Key Support/Resistance Areas: 42.00, 40.75, 39.50, 37.38, 34.70
Time Frame: 1 to 3 weeks

Company Description:
Itron, Inc. (Itron) provides a portfolio of products and services to utilities for the energy and water markets worldwide. The Company, along with its subsidiaries, is a provider of metering, data collection, and utility software solutions. It has two segments: Itron North America and Itron International. Itron offers meters and data collection and communication systems for electric, gas, and water utilities. Collection and communication systems include advanced metering infrastructures/automated meter reading (AMI/AMR) systems and a range of utility software and services.

Why We Like it:
We are adding a long candidate engaged in the smart grid technology industry. This will also provide more balance in our portfolio as we currently have a firm short bias. ITRI has broken a downtrend line from its April highs and looks poised to make a run higher. The stock is consolidating above its 50-day and rising 20-day SMA's which should also provide support. ITRI has solid support near $59.00 so let's use a trigger of $59.35 to enter long positions. More nimble traders may want to consider a deeper pullback to the $58.00 area but I'm not convinced the stock will trade there prior to moving higher. If triggered our profit targets are +7% and +9.5% higher.

Suggested Position: Long ITRI stock if it trades up to $59.35

Options Traders: Buy November $60.00 CALL, current ask $1.60

Annotated chart:

Entry on October XX
Earnings 10/28/2010 (unconfirmed)
Average Daily Volume: 412,000
Listed on October 4, 2010