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Blackstone Group
We're seeing a similar price setup from asset manager Blackstone Group (BX - Get Report) this month. Like ProLogis, Blackstone is currently forming an ascending triangle pattern, in this case signaling that the uptrend in shares that kicked off in January is likely to continue as we head into the summer. For Blackstone, the big price level to watch is resistance up at $29.
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What's so special about the $29 level? It all comes down to buyers and sellers. Price patterns, such as this ascending triangle pattern in Blackstone, 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 Blackstone's shares themselves.
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The $29 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 $29 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 $29, then it's time to join the buyers in Blackstone.