Advance Auto Parts
That's because Advance is currently forming an ascending triangle pattern, a bullish setup that's formed by a horizontal resistance level above shares (in this case at $81) and uptrending support below shares. Essentially, as AAP bounces in between those two technically important price levels, it's getting squeezed closer and closer to a breakout above that $81 price ceiling. When the breakout happens, we've got a buy signal for this stock.
Momentum adds some extra evidence for upside in AAP. While it's shallow, 14-day RSI has been in an uptrend since shares spiked following third-quarter 2012 guidance at the end of October. Since momentum is a leading indicator of price, that's a good sign for traders right now.Extra evidence aside, it's critical to wait for the price breakout before becoming a buyer. Don't be early on this trade.
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