Bank of New York Mellon
You don't have to be an expert technical analyst to figure out what's going on in shares of Bank of New York Mellon (BK - Get Report) -- the $35 billion financial services firm is in a textbook uptrend. That's about as simple as a technical pattern gets...
BNY Mellon has had its price action bounded by trendline support to the downside, bouncing higher each of the last seven times it's been tested. That uptrending channel provides a high-probability range for price action on the way up -- and while you want to be a buyer in an uptrend, the ideal time to buy comes on a bounce off of support.
Buying off a support bounce makes sense for two big reasons: it's the spot where shares have the furthest to move up before they hit resistance, and it's the spot where the risk is the least (because shares have the least room to move lower before you know you're wrong). If you decide to buy BK on today's bounce, keep a protective stop on the other side of the trendline.
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