As you can see on the chart above, Rexnord (NYSE: RXN), an industrial products company, is breaking out.
Last week shares surged above the key support line on the chart around $30.75.
This pushed share prices above the resistance point of what traders call an “ascending triangle pattern.”
My team of traders tell me that the upside breakout is indicating that more gains are going to be made.
With ascending triangle patterns, we can calculate the expected move on a breakout by taking the height of the pattern.
In this case, it’s about $4.
My team says that means to look for shares of Rexnord to climb at least to $34.75 in the next few weeks.
From its current price, that indicates a 10% rally.
© Chart courtesy of Today’s Profits. All rights reserved.
