Staples, Inc.

By root | April 29, 2008 AAA

For today's chart we've chosen to take a look at Staples Inc. (Nasdaq:SPLS) because it is trading within a well-formed symmetrical triangle pattern. As you can see from the chart below, the converging trendlines have acted as levels of support and resistance in the past and traders will now watch closely to see which of these barriers will be broken first. A break above $23.25 will likely be used by the bulls to signal a move toward a short-term target of $25. Conversely, a move below $21.25 will be used by the bears to signal a move toward a short-term target of $17.50. Symmetrical triangles are deemed to be very reliable, but some more time is needed before traders get confirmation of the stock's direction.




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