For today's chart we've chosen to take a look at ERTS because it has recently broken out of a cup-and-handle pattern. As you can see from the chart below, the bulls have been able to send the price of the company's shares above the resistance of $57.50 - a level that has prevented a move higher several times in the past. Most traders would expect to see this former price barrier act as support in the event of a pullback.

We've also brought attention to the large volume that accompanied the breakout because this may also be used by traders to confirm the upward momentum.



ERTS_111406.gif

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