Up first is Agilent Technologies (A), a tech company that's evolved into one of the largest healthcare diagnostic device suppliers on the market. Agilent spent most of 2013 consolidating sideways in an ascending triangle pattern, but traders who missed the breakout above $45 resistance back in early May are getting a second chance at a low-risk entry in this stock.
The ascending triangle in Agilent was formed by a horizontal resistance level above shares at $45 and uptrending support to the downside. The breakout above $45 at the start of May was a buy signal for Agilent, but shares corrected alongside the broad market for the rest of the month. Now a throwback down to newfound support at $45 is giving traders a buying opportunity.A throwback happens when a stock moves back down to test newfound support at its former breakout level -- in this case at $45. And while throwbacks look ominous, they're actually constructive for stock prices because they re-verify the stock's ability to catch a bid at support. For that reason, it's best to think of a throwback as a second chance at a low risk entry in Agilent. While shares are slightly below $45 as I write, the move isn't material enough to count as a violation. Look for the first significant bounce off of support as a buy signal.
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