Like AIG, Federated is forming an ascending triangle setup, with a horizontal resistance level at $22 and uptrending support below shares. The pattern in shares isn't the most important thing about this setup, though. When you're looking at price patterns, it's important to think about them in real terms, not in terms of geometric shapes; after all, those shapes may be a good way of describing the pattern, but they don't answer why it matters.
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