A more conspicuous bullish setup is taking shape in shares of Australian banking giant Westpac Banking (WBK). Westpac has been no slouch over the last six months and change, rallying more than 26% since late October -- but it's the price pattern forming in shares now that bodes paying closer attention to.
Westpac spent the last couple of months consolidating sideways in an ascending triangle pattern, a bullish setup that signaled a buy on the move above $164. The ascending triangle is formed by a horizontal resistance level above shares (at that $164 level) and uptrending support below; as shares bounced in between those two technically important price levels, WBC was getting squeezed closer and closer to a breakout. That breakout happened this week.
Now WBC is signaling buy. Shares have confirmed the move through $164 without moving excessively far through it, which makes this an attractive entry point in the stock. While there is an abundance of gaps in WBC right now, they're suspension gaps caused by this stock's overnight trading on the Australian Securities Exchange. They're technically irrelevant.If you decide to be a buyer here, I'd recommend keeping a stop at the 50-day moving average.
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