Beer giant Ambev (ABV) is another stock that's forming an ascending triangle setup right now. The company, which weighs in as the biggest beer brewer in Latin America, has had an impressive rally of its own in 2012: shares have climbed around 16% since the first trading day in January. For ABV, the resistance level to watch is $44.
Like with CHL, Ambev has some other factors that add to the strength of this pattern. The first is volume; trading has been slowly declining since the pattern initiated in late March. The second is momentum, as measured by 14-day RSI; momentum has been in a steady uptrend since late November 2011 -- the fact that the RSI line is as of yet unbroken tells us that prices are still climbing at an increasing rate, a good sign for a bullish 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 Plus 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