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For today's chart we've chosen to take a look at ATP Oil and Gas (Nasdaq:ATPG) because it is trading near an influential level of resistance. As you can see from the chart below, the bears have stepped in and pushed the price of the company's shares lower each time the Relative strength index (RSI) was above 70. The RSI is a very popular trading tool used by technical analysts to gauge the overbought and oversold conditions of a given stock. The current reading of 67.65 suggests that ATPG is overbought in the short term and this story is strengthened when the nearby trendline is taken into consideration.

Any short-term weakness in the price action would cause many traders to watch for a pullback toward the support that is found near the $35 level.


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