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For today's chart we've chosen to take a look at Cooper Industries Ltd. (NYSE:CBE) because the price has recently bounced off the $48 support. As you can see from the chart below, the nearby support level has historically prevented a move higher, but notice how the story changed once the price broke out in April. This chart is a good example of the classic role reversal between support and resistance and it will be interesting to see if the bulls step in here and prevent a move back toward the confined trading range of 2006. For more on this, see Support and Resistance Reversals.

We've also added the MACD indicator, which is trading at historic lows and has recently crossed above its trigger line. This bullish crossover could be used by traders to confirm the strength of the nearby support and may signal a move back toward the 52-week high of $59.05.


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