Berry Global Group, Inc. (BERY) is a global packaging and container company. While it sounds like a boring business, these are products that remain in high demand. Corporations continue to find more efficient and environmental friendly ways to package and market products, and Berry Global has the solutions.
From food packaging to boat covers, Berry Global has a product offering that has helped a small-town Indiana company grow into a multi-billion-dollar global business. What's more, this boring packaging and container stock may be on the verge of a nearly 30% rally. This is thanks to a pattern that is developing on its price chart – an ascending triangle.
Ascending triangle patterns tend to be bullish breakouts, sending shares sharply higher once the red resistance level is broken. The company reports earnings tomorrow, but the stock is down to $48.40 per share today. As long as it holds above the green support level, the ascending triangle pattern remains intact, and a bullish breakout remains likely.
That signals for a 28% upside rally due to the height of the triangle pattern, which is $10.50. Once a breakout occurs, that's the estimated move from the key red and green lines on the chart.
However, let's say that the stock fails to hold the green support level. Then we are looking at a 20% decline as shares race new 52-week lows. That's the nice thing about ascending triangles; we have two key levels to watch, and once one level breaks, we know the expected move that will take place right away.
In sum, a seemingly boring packaging and container company, Berry Global, is expected to see rapid double-digit moves in the coming weeks. A breakout to the upside signals the potential for a nearly 30% rally, while a breakout lower would signal that there's a quick 20% decline coming.