Danaher Corporation (NYSE: DHR)

Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide.

Take a look at the 1-year chart of Danaher (NYSE: DHR) below with added notations:

DHR has hit the $145 mark as resistance twice during the course of the past three months. The stock pulled back from that level again last week, and now sits just a couple of percent below it. A solid close above $145 should lead to another leg higher for DHR.

The Tale of the Tape: DHR has a key 52-week resistance at $145. A possible long position on the stock would be on a breakout above that level with a stop placed under it.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!
Christian Tharp, CMT