For today' chart we've chosen to take a look at
Columbus McKinnon Corp (Nasdaq:
CMCO) because it has been trading within a
horizontal channel pattern. As you can see from the chart below, this stock has been range-bound between $21 and $25.50 for the past six months and recent price action is suggesting this story will continue. The sideways price action is viewed by traders as a time of indecision and we would expect this sideways trend to continue until we see a break beyond one of the mentioned barriers. Traders are always interested in channel patterns because a move beyond the upper or lower part of the channel is generally followed by a sharp movement in the direction of the
breakout.
We've also added the
MACD indicator, which has recently crossed below its signal line. This bearish crossover will be used by traders to confirm the strength of the nearby resistance and many
range-bound traders will watch for a move toward the $21 support.
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