NewMarket Corp

For today's chart we've chosen to take a look at NEU because it is in the process of testing the support of its 200-day moving average. The chart below is a good example of how a long-term moving average can prop up the price of an asset after it has experienced downward momentum. This stock is in an interesting position because it has not traded below its 200 DMA since late 2005, which could become a reason that will convince the bulls to start taking a position again.

We've also added the RSI, which has recently formed a double bottom. The strength seen in this pattern suggests that the selling pressure is weakening and that we could start to see similar strength reveal itself in the price action of NEU.