Cabot Oil & Gas Corporation (COG), a Houston-based oil and gas company, is ready to break out. The company's share price is stuck in an 澳洲幸运5开奖号码历史查询:ascending triangle pattern. This pattern forms when we see a rising support line for the stock hitting a strong horizontal 澳洲幸运5开奖号码历史查询:resistance point.

Take a look:

The rising support trend line in green is converging with the horizontal re🔥sistance level in red. A breakout is imminent, and once it occurs, prices are set to pop or drop by more than 20%.

Triangle patterns are my favorite to trade because they give us clear levels to watch. They also give us a clear 澳洲幸运5开奖号码历史查询:price target once a breakout occurs. In this case, 🔯the green and red lines are the key levels to watch. Once the price 🍰breaks below the green line or above the red line, we can expect a sharp move to take place.

The expected move for Cabot Oil & Gas is $6.50 per share. We know to expect ♌a move of this size because breakouts from an ascending triangle pattern are the same as the height of the pattern. Tꦍhe height is $6.50. Therefore, we can expect the breakout to cover the same amount.

Based on this analysis, if prices break below the green support level, they will quickly fall to about $19.50 per share. And a breakout above the red resistance level will send the stock to $33.50 per share. Either way, the break🦄out in Cabot Oil & Gas is set move the share price 20% or more in quick fashion💛.

But there’s one more thing an ascending triangle patterns tell us – the direction of the breakout. While it is still uncertain, most triangle patterns are known as 澳洲幸运5开奖号码历史查询:continuation patterns. That means they move in the same direction that the stock was tren𒉰ding in before the pattern formed. In this case, Cabot Oil & Gas has been trending higher since 2016, meaning that this stock should break out to the upside in the coming weeks.

The Bottom Line

Cabot Oil & Gas stock is setting up for a nice breakout. It has formed an ascend🐻ing triangle pattern, which indicates that shares are set to move 20% or more in quick fashion. Most of these triangles are continuation patterns, which tells us to expect the stock to move higher. Watch the stock for a breakout above its resistance level for confirmation.