American Tower

Tweak the trading pattern in TLM a bit, and you've got the setup that we're watching in shares of American Tower ( AMT). Instead of horizontal resistance and uptrending support (a combination that makes an ascending triangle pattern), AMT is trading in a sideways channel with horizontal resistance and support right now. That lack of a trend direction in the setup means that traders in AMT don't have the same directional bias that they do in Talisman Energy.

But there's still a trade to be made on this stock: an "if/then trade." Essentially, the if/then trade works like this: If shares break out above resistance at $64, then AMT sends out a buy signal. Otherwise, if shares break down below support, then AMT is a short candidate. Either way, this trade eventually works out, I'd suggest keeping a protective stop just on the other side of the 50-day moving average.

American Tower is one of Farallon Capital Management's holdings and also shows up in Viking Global Investors' portfolio.

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