For today's chart we've chosen to take a look at
AmerisouceBergen Corp (NYSE:
ABC) because it is in the process of testing the
support of an ascending
trendline. As you can see from the chart below, the trendline has provided support for this stock in the past and it will be interesting to see if this time will be any different. We've also added the 200-day moving average because it prevented a move lower in December. This nearby support could persuade some bulls to enter around the current level because of the favorable
risk/reward ratio.
We believe that traders who are holding a long position in this stock may choose to place their stop-loss orders below the moving average (pink line) because a break below this support will be a technical signal of a shift in the long-term uptrend.
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