Last, but certainly not least, is commercial food service firm
(SYY - Get Report)
. 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
-- Written by Jonas Elmerraji in Baltimore.
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