4 Triangle Trades to Consider

Let's look at four charts with interesting triangle patterns forming.

First, the daily chart of utility stock AES Corp. (AES) shows a large triangle pattern with a small horizontal channel that formed this month, testing the downtrend line and supported by the 50-day moving average. The price momentum indicators have flattened during the recent consolidation, but the weekly moving average convergence/divergence histogram, which is behind the daily indicator, has been rising for the last month. The Money Flow Index, a relative strength measure using volume, reflects buying momentum, and on-balance volume is above its 21-period signal line. The stock is a buy after a close in upper candle range above resistance, with an initial percentage stop under the 50-day moving average....281 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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