Diageo

Up first is Diageo ( DEO), a stock that I talked about in last week's column. Diageo has spent the last several months bouncing within an ascending triangle pattern, and now this week's confirmed breakout is making DEO worth a second look.

The ascending triangle pattern is a bullish setup that's formed by horizontal resistance above shares and uptrending support below shares. As DEO bounced within the channel, it was getting squeezed closer and closer to a breakout above that $120 resistance level. When the move finally happened, it triggered our buy signal in this stock.

>>5 Big Stocks to Trade (or Not)

Because Diageo had seen a false breakout earlier in the month, waiting for confirmation (in the form of holding the breakout for more than one trading session) was critical. Now looks like a good time to be a buyer in DEO. If you decide to jump in here, I'd still recommend keeping a a protective stop at the 50-day moving average.

If you liked this article you might like

These Are the Top 50 Jobs in the U.S. Right Now

Driving This Beastly Cadillac CTS Reminded Me That Sexism Is Alive and Well

Why Amazon's Reported Smart Glasses Might Be Just a Niche Product -- For Now

How to Eat Lunch With Billionaire Warren Buffett

Why Apple Pay Cash Won't Be a Venmo Killer: PayPal CEO