First up is industrial gas supplier Praxair (PX), a stock that's had a less than inspiring run in 2012 -- shares of the $31.6 billion firm are essentially flat since the first trading day in January. But that could be about to change.
Praxair is currently forming an ascending triangle pattern, and it's a long one. This pattern has been setting up since all the way back in early June. But the longer the pattern, the bigger the trading implications, so this is one setup worth watching. The ascending triangle is a bullish price pattern that's formed by a horizontal resistance level above shares and uptrending support below. As PX bounces in between those two levels, it's getting squeezed closer and closer to a breakout above $109 resistance. When that breakout happens, we've got a buy signal in Praxair.
Momentum adds some extra confirmation to Praxair's upside setup. While this stock has meandered sideways, 14-day RSI has been increasing in a shallow uptrend. Since momentum is a leading indicator of price, that's a good sign for longs in this stock right now...
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