Now is the time to take a look at Safeway (NYSE:SWY), because it has risen toward the upper resistance of a long-term inverse head and shoulders pattern.
As you can see from the chart below, the $26 resistance has prevented a move higher on six separate occasions. Investors should watch carefully to see if this story will change. Also watch closely for a move above the neckline ($26).
Technical traders will likely use a break above $26 as a signal of a sharp move higher. It is important to note that this chart is slightly different than what we usually present, because each candlestick represents one week rather than one day.
Casey Murphy of ChartAdvisor also expects the long-term resistance to become a strong area of support once the bulls are able to push the price above the resistance.