Toyota Motors (TM) is another name that's been benefitting from some upward momentum in 2013, only more so: Shares of TM have rallied close to 32% since the calendar flipped over to January. And now, this Japanese automaker looks well positioned for even higher ground by the end of the year.
That's because TM is currently forming an ascending triangle pattern, a price setup that's formed by a horizontal resistance level above shares at $130 and uptrending support to the downside. Basically, as TM bounces in between those two technically significant levels, it's getting squeezed closer and closer to a breakout above resistance. When that breakout above $130 happens, we've out our buy signal.At first glance, Toyota's chart looks abnormally "gappy". Those gaps, called suspension gaps, are caused by off-hours trading of Toyota's shares in Tokyo and London -- they can be ignored for technical purposes. The 50-day moving average has been a reasonably good proxy for support all the way up; I'd recommend keeping a protective stop right underneath it.
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