EMC Corporation
For today's chart we've chosen to take a look at EMC Corporation (NYSE:EMC) because it is testing the support of a multi-year trendline. As you can see below, the $15 mark has proven to be very influential and we believe that technical traders will continue to watch this level to see if it can prevent the bears from sending the price lower. This chart is a good example of the classic role reversal between levels of support or resistance.
As many of you know, it is not uncommon to see a previous level that has prevented a move higher to change its role and become a new area of support. We believe that traders will consider entering a long position near $15 because the nearby horizontal trendline offers an interesting risk/reward ratio.
For more, see Support And Resistance Reversals
As many of you know, it is not uncommon to see a previous level that has prevented a move higher to change its role and become a new area of support. We believe that traders will consider entering a long position near $15 because the nearby horizontal trendline offers an interesting risk/reward ratio.
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