For today's chart we've chosen to take a look at
Mercury Computer Systems Inc (Nasdaq:
MRCY) because it has broken out of its confined range. Notice how the lower
trendline previously acted as an area of support and how it is now looking like it has become an area of resistance that will prevent a move higher. It will be interesting to see if the bulls will be able to push the stock back between the trendlines or if the bears will continue to control the momentum that was started at the beginning of the downtrend in 2005. We believe that the next couple of trading days will have a very influential role on the short-term direction of this stock because it will either overcome the resistance or bounce off the resistance and head lower.
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