Trading in Webster Financial Corporation (NYSE:WBS) shows a classic ascending triangle. These patterns are bullish and could suggest a move higher. This is why Webster is the Stock of the Day.

Some investors dismiss chart analysis as little more than astrology. But at its core, technical analysis is the study of supply, demand and market psychology.

As the chart shows, Webster Financial has formed a classic ascending triangle, a pattern that often signals a potential upside breakout.

The top of the pattern is a horizontal resistance line. Resistance forms when sellers repeatedly emerge at the same price level, preventing the stock from moving higher.

The lower trendline slopes upward, showing that buyers have become increasingly aggressive over time. They have been willing to pay progressively higher prices, pushing support higher.

The result is a market dynamic in which patient sellers are meeting increasingly eager buyers. If demand eventually overwhelms supply at resistance, Webster could break out and move higher.

Webster Financial Technical Analysis

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