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.
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