For today's chart we've chosen to take a look at Dillard's Inc
) because it bounced off the resistance of a descending channel
. As you can see from the chart below, the trendlines have created a well-defined trading range over the past six months and it will be interesting to see if this story will be able to continue. On February 7
, we noted that that bearish traders would likely set their short-term targets near the January low of $14.50. As you can see from the chart, the bears did indeed take control of the momentum and now traders are watching to see if this will happen again. We expect that traders will set their targets near the horizontal trendline again and it would not be surprising to see them protect their positions by setting a stop-loss
above yesterday's high of $19.20.