Annaly Capital Management
A similar setup is forming in shares of Annaly Capital Management (NLY - Get Report) -- except in the case of this mortgage REIT, the breakout has yet to happen. That's a good thing for investors looking to get ahead of a move in shares.
Like Eaton, Annaly is forming an ascending triangle setup, in this case with resistance at $16.50. The ascending triangle works like this: As shares of Annaly bounce in between that resistance level at $16.50 and uptrending support below, they're getting squeezed closer and closer to a breakout above resistance. A breakout above that price level indicates that buyers have absorbed the glut of supply that's previously existed at $16.50.
Because Annaly is a mortgage REIT, it tends to trade in a fairly tight range. While that does constrict the upside prospects of this stock, fairly volatile interest rates and investor demand for income stocks could still help spur a material breakout move in NLY.Annaly, which has a B buy rating from TheStreet Ratings, is one of the top-yielding real estate stocks.