Waddell & Reed Financial, Inc. (NYSE: WDR)

Waddell & Reed Financial, Inc., through its subsidiaries, provides investment management, investment product underwriting and distribution, and shareholder services administration to mutual funds, and institutional and separately managed accounts in the United States. The company acts as an investment adviser for institutional and other private investors, and provides sub advisory services to other investment companies; underwrites and distributes registered open-end mutual fund portfolios; and offers fee-based asset allocation investment advisory products to advisors channel customers.
Take a look at the 1-year chart of Waddel (Nasdaq: WDR) below with my added notations:

WDR has formed a relatively clear down-channel chart pattern over the last 8 months. A channel is simply formed through the combination of a trend line support that runs parallel to a trend line resistance. When it comes to channels, remember that any (3) points can start the channel, but a 4th point or more confirms it. You can see that WDR has several points of channel resistance (blue) and support (red).

The Tale of the Tape: WDR has formed a common pattern known as a channel, in this case a down channel. A long trade could be entered on a pullback down to the channel support, or on a break through the channel resistance, which is currently sitting near $50. Short opportunities would be on rallies up to channel resistance or on a break of channel support.
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