We're seeing the exact same setup in shares of solar power systems maker SunPower
(SPWR - Get Report), except this mid-cap solar name hasn't broken out yet. The breakout comes on a push through resistance at $34. When $34 gets taken out, buying shares becomes a high-probability trade.
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Whenever you're looking at any technical price pattern, it's critical to think in terms of those buyers and sellers. Triangles and other pattern names are a good quick way to explain what's going on in a stock, but they're not the reason it's tradable. Instead, it all comes down to supply and demand for shares.
That $34 resistance level is a price where there has been an excess of supply of shares; in other words, it's a place where sellers have been more eager to step in and take gains than buyers have been to buy. That's what makes a breakout above it so significant -- the move means that buyers are finally strong enough to absorb all of the excess supply above that price level.
Wait for the breakout before taking the trade.