For today's chart we've chosen to take a look at Apartment Investment & Management Co. (NYSE:AIV) because it is trading within an ascending triangle pattern. As many of you know, this pattern is constructed by connecting a series of increasing troughs and identifying a price level that has consistently prevented the price from heading higher. The clearly marked levels of support and resistance make this pattern a favorite amongst short-term traders.
A break above the resistance is used to suggest that the bulls are in control of the direction and it is often followed by a quick move higher. As you can see from the chart below, a rise above $40.25 would likely trigger a wave of buy orders. We expect that this stock will likely be added to the radar of many traders because of the bullish chart formation.