Fortune Brands Home & Security
There's no two ways about it -- it's been a stellar year for shareholders of Fortune Brands Home & Security (FBHS): shares of the $4.8 billion home improvement and security stock have rallied more than 74% since the first trading day in January. And now, it looks like Fortune could be headed even higher in 2013...
That's because shares are currently forming an ascending triangle pattern, a bullish setup that's formed by horizontal resistance to the upside and uptrending support below shares. As FBHS bounces in between those two lines, it's getting squeezed closer and closer to a breakout above that $30 resistance level. When the breakout happens, traders have a buy signal for this stock.
As close as FBHS is to that $30 breakout level right now, this trade looks likely to trigger this week; that's why it's worth keeping a close eye on. The 50-day moving average has acted as a pretty good proxy for support in the last two months, so it's a logical place to put a protective stop below.
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