DRS Technologies Inc

By root | March 07, 2006 AAA

For today's chart we've chosen to take a look at DRS because it has broken through a critical area of resistance (dotted blue line) on a point-and-figure chart - a technique used by technical traders to filter out short-term noise. As you can see from the chart below, the $53 mark has prevented the price from heading higher on several occasions in the past two years. Now that the price has surpassed this resistance, we'd expect it to become an area of support and prop up the shares in the event of a sell-off. Another interesting area of support is near the $46 level (dotted red line) where we'd expect it to act as long-term support in the event of a drastic move lower.

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