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.

You May Also Like

Related Analysis
  1. Stock Analysis

    Procter & Gamble Picks a New CEO

  2. Stock Analysis

    As E-Cig Sales Growth Slows, Big Tobacco Gains

  3. Stock Analysis

    Motorola Rolls Out New, Improved Moto G Smartphone

  4. Credit & Loans

    Credit Card Review: Blue Cash Everyday Amex

  5. Stock Analysis

    Nike Settles Class Action Lawsuit over FuelBand

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!