Shareholders in Polaris Industries (PII) are having a stellar year in 2013; shares of the $9 billion ATV manufacturer are up more than 55% since the calendar flipped over to January. But even if you missed the move, you shouldn't ignore this stock. PII looks like it's still got higher ground ahead of it.
That's because Polaris is currently forming an ascending triangle pattern, a bullish price setup that's formed by a horizontal resistance level above shares at $137 and uptrending support to the downside. Basically, as PII bounces in between those two technical levels, it's getting squeezed closer and closer to a breakout above $137. When that happens, we've got a buy signal in shares.Relative strength has been in an uptrend since the start of the summer, a fact that adds some extra confirmation to the trade. Polaris has been outperforming a serious bull market. If you decide to take the $137 breakout, I'd recommend keeping a protective stop on the other side of the 50-day moving average.
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