2 Stocks Approaching Key Technical Levels In Ascending Triangle Patterns

Shopify Inc. SHOP and Boeing Co. BA are two stocks moving Wednesday.

Boeing shares are trading lower after the company reported worse-than-expected first-quarter EPS results. Shopify shares are trading higher after the company reported better-than-expected first-quarter EPS and sales results.

Below is a technical look at the charts.

Boeing Daily Chart Analysis

• Boeing stock is looking to retest an old resistance area as support after breaking out of an ascending triangle pattern.
• The stock is trading below the 50-day moving average (green) and above the 200-day moving average (blue), indicating the stock is most likely facing a period of consolidation.
• The 50-day moving average may hold as a place of resistance on the chart and the 200-day moving average is a potential area of support.

Key Levels To Watch

• The stock held $235 as resistance in the past before breaking out above the level in March.
• This $235 was a resistance as the stock struggled to cross above this area. Now the stock needs to hold this area as support.
• If the $235 level is able to hold as support, and the price can consolidate above this level, then the price could see higher moves.
• The stock has also been forming higher lows throughout the previous six months and these higher lows may hold as support. A break below this higher low trendline could bring about a large drop-off in price.

Shopify Daily Chart Analysis

• Shopify stock looks to be forming into what technical traders may call an ascending triangle pattern. The stock approached a key resistance near $1,285.
• The stock is trading above both the 50-day moving average (green) as well as the 200-day moving average (blue), indicating sentiment in the stock has been bullish recently.
• These moving averages may both hold as support levels in the future.

Key Levels To Watch

• The stock has been building higher lows throughout the year into an ascending triangle pattern.
• The ascending triangle shows a flat top resistance near the $1,285 level. The stock was able to cross above this level in February, but sellers were able to push the price back down.
• A break above flat top resistance with consolidation gives the stock a chance to push higher.
• A break below the higher lows may cause the overall trend to change.