For today's chart we've chosen to take a look at Colonial Bancgroup Inc
) because it is testing a long-term support
level. As you can see from the chart below, the $23.50 level has prevented a move lower on several occasions over the past year and it will be interesting to see if this level will prop up the price again. Notice how the $23.50 changed from an area of resistance (shown by the yellow arrow) into an area of support (illustrated by the white arrows). This role reversal will be used by traders to confirm the strength of the nearby support. For more on this subject see, Support and Resistance Reversals
. The bulls will need to step into this stock really soon if they want to prevent the bears from taking control of the momentum.