On February 19, we mentioned that BJ Services Company (NYSE:BJS) was testing the resistance of a descending trendline. We noted that range-bound traders would likely watch for a bounce off the $25.50 level and for a pullback toward $20. On the other hand, we predicted that breakout traders would likely watch for a move above the trendline and would use this event to signal a reversal of the downtrend. We concluded the report by saying that BJS would likely remain on the radar of many traders until one of the mentioned groups was able to take control of the stock's direction.
As you can see from the chart below, today's bullish price action was able to send the stock above the resistance and it is a sign that the breakout traders have won the battle. Technical traders will use today's break above $25 to signal a shift in the trend and it wouldn't be surprising to see the stock continue higher over the next few months.