Stock trading can be a lot like fluid dynamics. But fluid dynamics is easier. Take for example when you squeeze water through a nozzle at high pressure it can go supersonic as it explodes out the end. that calm stream now has a lot of power to move. The Ascending Triangle in Technical Analysis is a lot like that for traders. The pressure builds against the tightening price range until it releases. There is one in Salesforce.com (CRM), right now. The chart below shows the resistance at the top at 61.60 being tested as the support trendline rises from December. A break of that resistance carries a target of 66.20 higher, kind of like how far the water comes out of the nozzle. The other technical indicators give you an idea that a break higher could happen. The RSI is rising and bullish and the MACD is about to cross up. These support a move higher in the stock price. Are you ready for the explosion?
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