Up first is Diageo (DEO), a stock that I talked about in last week's column. Diageo has spent the last several months bouncing within an ascending triangle pattern, and now this week's confirmed breakout is making DEO worth a second look.
The ascending triangle pattern is a bullish setup that's formed by horizontal resistance above shares and uptrending support below shares. As DEO bounced within the channel, it was getting squeezed closer and closer to a breakout above that $120 resistance level. When the move finally happened, it triggered our buy signal in this stock.
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