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.

You May Also Like

Related Analysis
  1. Stock Analysis

    Celgene's $1 Billion Deal to Fight Cancer

  2. Stock Analysis

    The Fall of the Chinese Stock Exchange and its Impact on Alibaba, Youku Tudou, and ...

  3. Stock Analysis

    Obamacare Affirmed - What's the Investing Impact?

  4. Stock Analysis

    Sarepta Therapeutics One Step Closer to Drug Approval

  5. Stock Analysis

    Lions Gate to Bring Iconic Game to the Big Screen

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!