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.
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