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. Investing

    Facebook Vs. Weibo

  2. Stock Analysis

    Apple's Secret Plan To Change Augmented Reality Is Finally Emerging

  3. Stock Analysis

    Medallion Financial: NYC Loans Come Under Fire

  4. Stock Analysis

    Merck Takes Aim at Gilead. Should You Worry?

  5. Stock Analysis

    Why EMC's Acquisition of Virtustream Is Good News

Trading Center