Leggett & Platt
First up is industrial manufacturing stock Leggett & Platt (LEG). Shares of this fixture and furniture company have been forming a long-term ascending triangle setup for the last few months.
Now this setup could be about to trigger some additional upside in shares.
An ascending triangle is a price pattern that can be identified by a horizontal resistance level above shares (for LEG, that comes in at $23.75) and an uptrending support level below them. Essentially, as LEG's price bounces between those two technically-relevant price levels, they're getting squeezed closer to resistance, and the probability of an upside breakout increases dramatically.This setup works because it tips off traders to the point where demand for shares absorbs a big pocket of supply that's previously acted like a "price ceiling" of sorts. That's important context to keep in mind when you're watching for a breakout above $23.75. When the move happens, consider a protective stop just below the 200-day moving average. L&P shows up on a list of the 10 Best Dividend Aristocrats for 2012. Follow @stockpickr
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