British American Tobacco

British American Tobacco  (BTI)  is another textbook ascending triangle setup to put on your radar this week. This $115 billion tobacco giant has been forming its price setup since the middle of April, bumping up against resistance three times now in the past five weeks. For British American Tobacco, the key breakout level to watch is $24.

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What's so special about the $24 level? It all comes down to buyers and sellers. Price patterns, like this ascending triangle pattern in British American Tobacco, are a good quick way to identify what's going on in the price action, but they're not the actual reason a stock is tradable. Instead, the "why" comes down to basic supply and demand for British American Tobacco's shares themselves.

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The $24 resistance level is a price where there has been an excess of supply of shares; in other words, it's a spot where sellers have previously been more eager to step in and take gains than buyers have been to buy. That's what makes a breakout above $24 so significant -- the move means that buyers are finally strong enough to absorb all of the excess supply above that price level. When shares are able to sustain a bid above $24, then it's time to join the buyers in British American Tobacco.