Liberty Ventures Group
The exact same trade is shaping up in shares of Liberty Ventures (LVNTA) -- the big difference is that this stock hasn't broken out yet. LVNTA is currently bouncing in between an uptrending support level and horizontal resistance at $77.50. The move through that $77.50 resistance level is a buy signal for this stock.
With any technical pattern, it's critical to think in terms of buyers and sellers -- not shapes. After all, triangles, head and shoulders patterns, 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 $77.50 is a place where a glut of sellers has been willing to step in and put a ceiling in the stock. A breakout means that increasingly eager buyers have absorbed all of the excess supply for shares sitting at that level -- and without that barrier in place, shares have room to rally to the upside.