Tickers in this Article: DHR
On December 12, we mentioned that the stock price of Danaher Corp. (NYSE:DHR) was trading near the resistance of a long-term ascending channel. We also noted that it looked like a pullback was likely to ensue. As you can see from the chart below, the bears did indeed send the price lower, but the reason we've chosen to look at this stock today is because today's price action has pushed the stock below the support of the long-term channel. Notice how the lower trendline has been able to prop up the price of the shares several times over the past two years. Today's breakdown is significant because it suggests that the prolonged uptrend is shifting and that the bears are taking control of the stock's momentum. Techical traders will likely set their short-term targets at $75 and will also have their sights on an extended move toward the support near the $70 mark.