Northeast Utilities System
So, what will they be buying? Northeast Utilities System (NU) looks like a good candidate. Even though this "boring" utility stock isn't most investors' idea of a hot momentum name, the technicals in this stock point to more potential upside in 2013. It's all thanks to the ascending triangle pattern that NU's been forming since the summer.
The ascending triangle is a price pattern that's formed by horizontal resistance to the upside (at $40 in NU's case), and uptrending support below shares. Essentially, as NU bounces in between those two price levels, it's getting squeezed closer and closer to a breakout above that resistance level. When that breakout happens, traders have a buy signal in this stock.
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