For today's chart we've chosen to take a look at
Orbital Sciences Corp (NYSE:
ORB) because it is trading near an area of short-term
support. As you can see from the chart below, ORB recently broke out of an
ascending triangle pattern and is in the process of testing the $20 level. A move back toward a fresh level of support, like the one shown on the chart, is commonly referred to as a throwback and it is often used by traders to confirm the validity of a technical chart pattern.
We've also added the
Parabolic SAR indicator because it has triggered a buy sign. The reversal of the dots from above the price to below is used as a sign of increased upward momentum and we believe traders will start to step back in and push the price toward the
swing high of $22. We'll maintain a bullish outlook on this stock until the price falls below $20.
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