General Dynamics Corp. (GD) has set up nicely. Although we have seen plenty of upside, I feel there is still some upside left in the stock. Here's why.

GD has been riding along uptrend line support since the middle of December 2005. The stock recently popped off the uptrend, made new highs, and entered into a consolidation pattern with support at 66 and resistance at the new high of 70. Once the consolidation pattern led GD back to uptrend line support, the stock managed to make a move to the upside and break through the previous high at 70. This wasn't only a level of new highs, but a consolidation breakout as well.

GD looks attractive, especially on pull backs near resistance turned support at 70. On a fundamental note, GD is thriving off defense contract from third world countries flush with oil money.

Andy Swan is co-founder and head trader for DaytradeTeam.com.  To get all of Andy's day trading, swing trading, and options trading alerts in real time, subscribe to a one-week, all-inclusive trial membership to DaytradeTeam by clicking here.