Tweak the trading pattern in TLM a bit, and you've got the setup that we're watching in shares of American Tower (AMT). Instead of horizontal resistance and uptrending support (a combination that makes an ascending triangle pattern), AMT is trading in a sideways channel with horizontal resistance and support right now. That lack of a trend direction in the setup means that traders in AMT don't have the same directional bias that they do in Talisman Energy.
But there's still a trade to be made on this stock: an "if/then trade." Essentially, the if/then trade works like this: If shares break out above resistance at $64, then AMT sends out a buy signal. Otherwise, if shares break down below support, then AMT is a short candidate. Either way, this trade eventually works out, I'd suggest keeping a protective stop just on the other side of the 50-day moving average.
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