Last, but certainly not least, is commercial food service firm Sysco (SYY). Sysco is forming the exact same setup as the one we're watching in GGP right now: an ascending triangle pattern. In this case, resistance comes in at $32, and shares are testing uptrending support as I write. The resistance level in SYY is a much firmer level, so a close above $32 is a sufficient buy signal for this trade.
Remember, with any technical pattern, it's critical to think in terms of buyers and sellers -- not shapes. After all, triangles, channels and the like are a good way of describing what's happening on a chart, but they're not the reason why it's tradable.
Instead, that all comes down to the supply and demand caused by those buyers and sellers. The horizontal resistance level at $32 is a place where a glut of sellers has been looking to unload shares. A breakout above that price tells us that increasingly eager buyers have absorbed all of the excess supply of shares sitting at that level. It's crucial to wait for that breakout before putting your money on the line.To see this week's trades in action, check out this week's Must-See Charts portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
Twitter and become a fan on Facebook.
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