For today's chart we've chosen to take a look at EPIQ Systems Inc.
) because it is testing an interesting level of support ($15.15). As you can see from the chart below, the stock was trading within a rounding bottom
pattern for most of 2006. The breakout in late April was a technical signal of a move higher, but notice how the bears have recently caused the price to pull back toward the horizontal trendline. This retest of the support will be of specific interest to short-term traders because a bounce higher will confirm the pattern's signal of a dominant uptrend. On the other hand, a drop below the identified support will trigger many traders' stop-loss orders and will likely lead to a sharp decline. At this point, we believe that most technical traders will keep a bullish outlook on this stock and will watch carefully to see if the price closes below the nearby support. Risk adverse traders will likely wait for more than two consecutive closes below $15.15 to confirm that the momentum is indeed shifting lower.