Phelps Dodge Corp

For today's chart we've chosen to take a look at PD because it is in the process of testing a 13-month trendline. As you can see from the chart below, the ascending trendline has prevented the price from heading lower in the past and it will be interesting to see if this time will be any different. Bulls may want to pay particular attention to the identified trendline because the recent swing high has failed to move above the previous peak like that of a head and shoulders pattern. Technical traders often use this lower high as a sign that the demand for the stock may be weakening.