Take a look at the 1-year chart of Trimble (Nasdaq: TRMB) below with my added notations:
TRMB has been in a persistent downtrend since April. During that time the stock has also formed an important trend line of resistance (red). Always remember, any (2) points can start a trend line, but it’s the 3rd test and beyond that confirm its importance. So, TRMB obviously has an important trendline of resistance, which currently sits near $28.50.
The Tale of the Tape: TRMB is currently stuck under a down trending resistance. A break above resistance should mean higher prices, thus a long trade could be made. Short traders might look to enter a trade at the resistance.
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