Prosperity Bancshares (PB - Get Report) is another name that's forming an ascending triangle right now -- albeit in a shorter-timeframe. PB's ascending triangle has been forming since the start of March, with the resistance level to watch coming in at $47.
It's important to remember that ascending triangles don't work just because triangles are easy shapes to draw on a chart. Instead, it's not the triangle itself, but rather the technical forces that cause the triangle that investors should be focused on. Horizontal resistance is caused by a glut of supply of shares at that $47 level; in other words, it's a price where sellers have historically been more eager to sell and take gains than buyers were to buy. At the same time, uptrending support indicates that buyers are accumulating shares at higher levels.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
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
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts