Filed Under:
Tickers in this Article: BBOX
We've chosen to take a look at Black Box Corp. (Nasdaq:BBOX) because it is currently trading near an interesting level of resistance. This chart is a good example of how the price can often move back toward the entry level once the price breaks beyond barrier of a price pattern. This retest of the entry level is known by many traders as a throwback and it is often used to confirm the validity of the new momentum. As you can see from the chart below, BBOX broke below the support of a descending triangle and has since retested the resistance of the $39 level (shown by the right arrow).

Today's move above $39 could suggest that the bears are losing their conviction, but it may be a good idea to watch for several closes above the resistance before jumping on board with the bulls. A drop below $39 in the coming days will cause technical traders to watch for a move back toward the March low near $34.75.

comments powered by Disqus
Trading Center