Another example of an ascending triangle is taking shape in shares of Cypress Semiconductor (CY - Get Report), a mid-cap chipmaker whose technology is used in a bevy of products, from the auto world to the 3D glasses that come with the latest generation of TVs. In Cypress' case, the significant resistance level we're watching is $24.
The trading implications in this stock are largely the same as those in Reed. Essentially, there's an abundance of supply of shares of Cypress above $24 -- it's a price at which current shareholders begin to take profits. A sustained push above $24 means that buying pressures were able to overcome selling and that sentiment has shifted the technically significant prices for shares.
If and when shares do make their break for $24, consider a protective stop just below the 50-day moving average.>>Practice your stock trading strategies and win cash in our stock game.