For today's chart we've chosen to take a look at Pinnacle Entertainment Inc
) because it is currently testing the support of a long-term trendline
. As you can see from the chart below, the dotted line has provided support
for this stock several times since 2003 and there is no reason to believe that the story will be any different this time. Technical traders will watch the current level closely because it provides an interesting risk/reward ratio
. This means that the bulls who are already invested will likely protect their long positions by placing a stop-loss order
below the support. On the other hand, bulls who have been patiently waiting for a move toward the support may use the recent pullback as a reason to enter into a position.