With countless folks around the world getting ready to set off on their New Year's resolutions, Weight Watchers (WTW) stands to benefit in a big way -- but that's not why we're looking at shares of this stock today.
It's been a pretty tepid year for WTW. In spite of an early 2012 jump, the last 12 months ended with shares of this weight loss stock down around 5%. But the chart points to a change in trend.
That's because WTW is currently forming an ascending triangle pattern. The ascending triangle is a price pattern that's formed by a horizontal resistance level to the upside and uptrending support below shares. Essentially, as WTW bounces in between those two technical levels, it's getting squeezed closer and closer to a breakout above resistance at $57.50. When that breakout happens, investors have a "buy" signal for shares.After the breakout happens, I'd recommend putting a protective stop just below the 50-day moving average.
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