For today's chart we've chosen to take a look at
Mercury Computer Systems (Nasdaq:
MRCY) because it is trading near the bottom of its nine-month range. As you can see from the chart below, it will be interesting to see if the $12.50 level will be able to act as support and if the bulls can maintain the validity of the short-term
ascending channel. Range-bound traders will use today's
doji candle to confirm the nearby support and they will likely watch for a rebound back toward the upper barrier (currently near $15). It should be noted that technical traders will want to become very cautious in the event that the bears send the price below the lower trendline because this will signal a continuation of the downtrend that was started in early 2005.
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