(TRI - Get Report) is forming the setup setup right now, just in the longer-term.
Like Exxon Mobil, Thompson Reuters is forming an ascending triangle setup with resistance coming in just below $30. It's helpful to think of setups like these in real terms, not just in terms of geometric shapes; a "triangle" is a good way to describe the pattern, but it doesn't say anything about
why it's happening. So it's worth thinking of the TRI trade (or the XOM trade, for that matter) in terms of buyers and sellers.
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Overhead resistance is a place where there's historically been a glut of supply of shares. In other words, it's a price where sellers have been more eager to sell and take gains than buyers were to buy. That's why it's acted like a ceiling for shares.
But on the other hand, the uptrending support level means that buyers do have some control of shares at lower levels. A breakout to $30 means that all of the excess selling pressure at resistance has been absorbed by increasingly eager buyers -- and it makes sense to buy when buyers have taken out weak-handed sellers.
, it's critical not to be early. That's why you should wait for $30 to get taken out before putting your money on the line. When it happens, keep a
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