Today we've chosen to take a look at Danaher Corp. (NYSE:DHR) because it is trading near the resistance of an ascending channel. As you can see from the chart below, the upward sloping trendlines have created a well-formed trading range over the past two years and we'll watch to see if the stock will bounce off the nearby resistance like it has done in the past. We've also included the Parabolic SAR indicator because it triggered a sell sign today. This bearish signal will be used by traders to confirm the strength of the resistance and we expect that many short-term traders will now watch for a pullback toward the lower trendline. Notice how the SAR indicator has consistently created a sell signal (a reversal of the dots from below the price to above) as the price of the stock nears the upper band. Equally as interesting is how the indicator triggered buy signals near the lower trendline.
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