We're seeing the exact same setup in shares of Kimberly-Clark (KMB - Get Report) right now. The $33 billion paper products maker has been forming its own ascending triangle pattern since the beginning of the summer as well, with resistance at $87 and uptrending support coming in below shares.
KMB's setup isn't completely textbook -- this stock has established its pattern by rallying up to $87 and then collapsing quickly back down to support, a phenomenon that's left KMB with an unusual chart picture. Ultimately, though, that doesn't matter; with horizontal resistance and uptrending support in force here, the trading implications are exactly the same.
Whenever you're looking at technical price setups, it's important to think in terms of buyers and sellers. After all, it's not magic or geometry that's causing these patterns to be tradable -- it's supply and demand. The horizontal resistance level in KMB is a place where sellers have previously been more eager to sell and take gains than buyers have been to keep buying. But uptrending support tells us that buyers do have some control over shares at lower levels. The breakout means that buyers were able to absorb all of the excess supply of shares that was sitting above $87. That's why it's a buy signal.
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