We're seeing the exact same setup in shares of
HCA Holdings (
HCA) right now. It's just less far along.
Like Agilent, HCA is currently forming an ascending triangle pattern, in this case with resistance at $41.50. That resistance level is the breakout signal for this Nashville-based hospital company. Since the breakout hasn't happened yet, traders have an opportunity to be earlier in this trade.
>>5 Stocks Poised for Breakouts
Whenever you're looking at any technical price pattern, it's critical to think in terms of buyers and sellers. Triangles and other price pattern names are a good quick way to explain what's going on in this stock, but they're not the reason it's tradable. Onstead, it all comes down to supply and demand for shares.
That resistance line at $41.50 is a price where there's an excess of supply of shares; in other words, it's a place where sellers have been more eager to take recent gains and sell their shares than buyers have been to buy. But uptrending support indicates that buyers do have control of HCA at lower price levels. That's what makes the breakout above it so significant -- it indicates that buyers are finally strong enough to absorb all of the excess supply above that price level.
After the breakout, keep a
50-day moving average