Take a look at the 1-year chart of Rite Aid (NYSE: RAD) below with my added notations:
RAD has been winding its way higher since its October bottom and along the way it has created a couple of levels to watch. First, the stock has formed a relatively clear resistance at $9 (red), which would also be a 52-week high breakout if RAD could manage to move above it. In addition, the stock is climbing a short term, up-trending support level (green) over the last 5 months. These two levels combined have RAD stuck within a common chart pattern known as an ascending triangle. Eventually, RAD will have to break one of those (2) levels.
The Tale of the Tape: RAD has an up trending support and a 52-week resistance level to watch. A long trade could be made on a pullback to the support, or on a break above $9. A break below the up trending support could be an opportunity to enter a short trade.
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