Motorola Solutions

We're seeing the exact same trading setup in shares of communications infrastructure firm Motorola Solutions (MSI). Like SAPE, Motorola is forming an ascending triangle trade, in this case with resistance at $67. A breakout above that $67 price ceiling is our buy signal in MSI.

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Why all the significance at $67? It all comes down to buyers and sellers. Price patterns are a good quick way to identify what's going on in the price action, but they're not the reason a stock is tradable. Instead, the "why" comes down to basic supply and demand for MSI's stock.

The $67 resistance level, for instance, is a price where there has been an excess of supply of shares; in other words, it's a place where sellers have previously been more eager to step in and take gains than buyers have been to buy. That's what makes a breakout above $67 so significant -- the move means that buyers are finally strong enough to absorb all of the excess supply above that price level.

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