Becton Dickinson

You don't have to be an expert technical analyst to see what's going on in medical device and instrument firm Becton Dickinson ( BDX). Becton is currently forming an uptrending channel, a trading range that's bounded by a trendline resistance and trendline support level. Those support and resistance levels give us a high probability range for BDX to trade within. And as you might expect, the ideal time to be a buyer is on a bounce off of support.

When you're looking to buy a stock within a trend channel, buying after a bounce off of support 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 here, I'd recommend keeping a stop at the 30-day moving average; while the 30-day isn't a "default" moving average that many traders look at, it's been a good proxy for support since the uptrend started.

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