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.
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