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.

You May Also Like

COMPANIES IN THIS ARTICLE
Related Analysis
  1. Chart Advisor

    3 ETFs Poised For A Move Higher

  2. Charts & Patterns

    Target Vs. Walmart: Who's Winning The Big Box War?

  3. Trading Strategies

    Making Money The Wyckoff Way

  4. Investing Basics

    Know When To Buy & Hold It, Know When To Fold It

  5. Charts & Patterns

    Pros & Cons Of A Passive Buy And Hold Strategy

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!