The chart below is of Sears Holdings Corp (SHLD), which closed Friday at $180.46. I have been keeping an eye on the stock lately, and most recently noticed how it received support at its 50 day moving average two weeks ago. This is a good indicator that the stock is holding up and may want to move back towards $190 and new highs, but standing in its way before that can happen is $182 - $182.50 resistance. As you can see on the chart, the 20 DMA is acting as resistance, and every time the stock tested this area last week it ended up selling off back towards $180. Let's look at the chart:
Moving forward there are two entry point possibilities on this stock. The first is to buy into the 50 DMA support (if it trades down back towards it), the problem with this though is that it will most likely be intra-day, and there is higher risk. The other way to go here is to wait until $182.50 resistance is broken on high volume. The momentum on a day like that should push the stock to a close above $183, and you know you have great odds on your money then.
Lastly to look at is the MACD which is trending downwards towards 0, this is bearish right now as it is downtrending, but if these two lines should meet perhaps this week, and may be a bullish indicator of a move to come back to the upside.
I'm not a chartist but the person that runs Sears, Eddie Lampert, is money in the bank in my book. This is really a hedge fund discussed as a retailer. So you get to buy in a hedge fund without being a millionaire (Hedge funds allow investors to come in only from people with a high net worth).