Allegheny Technologies Inc- ATI

Commentary:
For today's chart we've chosen to take a look at Allegheny Technologies (NYSE:ATI) because it is trading within an ascending channel pattern. As you can see from the chart below, the two parallel trendlines have acted as areas of support and resistance in the past and it will be interesting to see if this story will continue. Technically speaking, the the trend is expected to remain upward until the price falls below $110.60, but we believe that a pullback may happen sooner than most expect.

We've added the Relative Strength Index and the MACD indicators to the chart because they are both moving in the opposite direction as the price (shown by the red horizontal lines). Notice how the indicators have created a new series of lower highs as the price of the stock has climbed upward over the past several months. This negative divergence suggests that the trend may not be as strong as many traders assume it is and a break below the trendline could signal a sharp correction.