For today's chart we've chosen to take a look at BJ Services Company (NYSE:BJS) because it is testing the resistance of its confined trading range. As you can see from the chart below, the descending trendlines have acted as levels of support and resistance in the past and it will be interesting to see if this story will continue. Range-bound traders will watch for a bounce off the $25.50 level and a resultant move toward the lower trendline, which is currently near $20.
On the other hand, breakout traders will watch for a move above the trendline and will use it to signal a reversal of the downtrend. Today's surging oil prices may be the catalyst needed for this group to see a prolonged move higher. We believe that BJS will remain on the radar of many traders until one of the mentioned groups takes control of stock's direction.