ServicFirst Bancshares Ascending Triangle

We have been monitoring the SFBS, ServicFirst Bancshares Stocks because this Stock is forming an Ascending Triangle.
Sevel times this year ServicFirst Bancshares has performed a 10+% profits after testing supportline.
We believe it will again and we are ready to buy when the price enter the area of 41.70-42.15
Stoploss 2% below supportline.

Why is supportline so important ? The supportline and resistanceline is very important because these lines indicate some important price areas. A supportline or resistanceline does not have to be horisontal lines, but can also be the lines formed by ex. a trendchannel like this formation.
The price often test these lines and if the lines holds and reject the price, its considered to be strong areas. These strong areas can be used in the trading strategy and in Technical Analysis like this Analysis.
Ascending Triangles often capture the price within a certain periode of time.
The resistanceline and the supportline often reject the price sevel times, but sooner or later the price will breakout.
Normally we trade inside the Ascending Triangle in the direction of the current trend. But more important is that when the price breakout the Ascending Triangle we are ready to add to our positions or do new trades.
The breakout is normally in the direction of the trend from before the Ascending Triangle formation.
In this case, we might see the price breakout of the resistanceline and see the price continue upwards.

ServicFirst Bancshares Ascending Triangle

ServicFirst Bancshares Ascending Triangle

SFBS, ServisFirst Bancshares Inc. is a Birmingham, Alabama based bank holding company. ServisFirst focuse on giving business and personal financial services via varous competitive services and products. By ultimo march, 2018 the ServisFirst Bancshares Bank has accumulated a total of $7.01 billion in assets.

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