A similar setup is taking shape in our next name. Small-cap satellite communications stock ViaSat (VSAT) is bottoming thanks to an ascending triangle pattern that's forming in shares.
The ascending triangle is a setup that's formed by horizontal resistance to the upside (at $41 in this case) and uptrending support below shares. Essentially, as VSAT bounces in between those two technical levels, it's getting squeezed closer and closer to a breakout above that resistance level at $41. When that happens, we've got a buy signal in this stock.
At a quick glance, the pattern in VSAT looks a lot like the one in GRMN. That's because the same buyer/seller imbalance at resistance is keeping this stock down at the moment.Momentum adds some extra confidence to this trade - 14-day RSI has been trending higher since the summer. Since momentum is a leading indicator of price, that's a very good sign for shares. When $41 gets taken out, I'd recommend jumping in.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV