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.

Nothing contained in this publication is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.
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