Last up is Cytec Industries (CYT - Get Report), a relative strength performer that's forming another textbook ascending triangle pattern right now. For Cytec, the breakout comes on a move above $70 resistance.
$70 isn't just significant because it's the resistance level that this stock has obeyed since September -- it's also the 52-week high for this stock. Making new highs is significant from an investor psychology standpoint because it means that everyone who has bought shares in the last year is sitting on gains -- as a result, the "back to even" mentality is less of a concern than it would be for a name with a higher proportion of shareholders sitting on losses. That should help to accelerate breakout gains when buyers absorb that excess supply of shares at $70.
To see this week's trades in action, check out the Technical Setups for the Week portfolio on Stockpickr.
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