For today's chart we've chosen to take a look at Baxter International Inc (NYSE:BAX) because it is trading within a short-term consolidation pattern. As you can see from the chart below, the bulls have recently been able to push the stock above the resistance of the $61 level. The strong volume that accompanied the move suggests that there continues to be significant buying interest. Technically speaking, it is not uncommon to see a stock remain range bound after experiencing a strong move. This chart is a good example of the type of stock that traders look to own when the broader markets are looking weak.

Bullish traders will watch for a retest of the $61 dollar level and they will probably try to buy as close to this level as possible to ensure a favorable risk/reward ratio. We've also added the Relative Strength Index because it hasn't triggered an overbought signal and we believe that this indicator still has room to move higher.

You May Also Like

Related Analysis
  1. Stock Analysis

    Lions Gate to Bring Iconic Game to the Big Screen

  2. Stock Analysis

    Intel Looks Ahead, Shakes Up Management Team

  3. Stock Analysis

    Sprint Becomes a Major U.S. Retailer

  4. Stock Analysis

    Why Cisco Bought OpenDNS for $635 Million

  5. Stock Analysis

    Dunkin' Beats Starbucks in Customer Satisfaction

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!