Regional banking stock Fulton Financial (FULT - Get Report) is a smaller name that's showing traders an attractive long-term pattern this week. For the past several months, Fulton has been forming an ascending triangle setup, a formation that has bullish implications for buyers right now.
Here's how to trade it:
Two important technical levels form an ascending triangle: horizontal resistance above shares (in this case at the $10.60 level), and uptrending support below them. As FULT bounces in between those to lines, it's getting squeezed closer and closer to a breakout above resistance at $10.60. That breakout becomes the buy signal that traders need to look out for.>>3 Bank Revenue Winners From Jefferies Trading volume has been declining over the course of this pattern, an unlikely positive sign for our ascending triangle setup. In a textbook ascending triangle, traders actually want to see volume taper off, only to spike when the breakout happens. The spike in volume above $10.60 tells us that buyers are participating in the breakout. Wait for that to happen before you participate too.