BankUnited (BKU) is another name that's sporting an ascending triangle pattern right now. In the case of this Florida-based banking stock, overhead resistance is in at $23, and support is trending higher from the company's late-October lows. The buy signal comes on the breakout above $23.
In an ascending triangle pattern, as with any other technical formation, it's great to know how to spot it -- but it's more important to understand why the setup works. In BKU, for instance, the $23 resistance level identifies a large pocket of supply of shares. As buyers bid the stock higher, bids get absorbed by selling pressures at the $23 level, causing that price to act as a sort of "ceiling" for shares. In an ascending triangle, though, shares bounce in between support and resistance, squeezing shares closer and closer to that resistance level and increasing the probability of a breakout.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV