Mid-cap U-Haul parent company Amerco ( UHAL) has been looking pretty bullish for the past year. Shares have more or less doubled in the last 12 months, even in spite of the fact that they've been consolidating sideways since mid-March. And this summer, UHAL's price action points to even higher ground.
That's because UHAL is currently forming an ascending triangle pattern, a price setup that's formed by a horizontal resistance level above shares at $180 and uptrending support to the downside. Essentially, as UHAL bounces in between those two technical price levels, it's getting squeezed closer and closer to a breakout above resistance. When that happens, we've got a buy signal in shares.UHAL generally sees pretty light trading volume. For that reason, it makes sense to be particularly careful entering a trade in UHAL -- a breakout could send less-disciplined traders chasing this stock above $180. The ascending triangle looks textbook right now; if you decide to buy the breakout, keep a tight protective stop in place.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV