Equifax Inc. (NYSE:EFX) shares are consolidating on Monday. They are testing an important resistance level. If the shares can break this resistance, a large move higher may follow. This is why Equifax is the Stock of the Day.

As you can see on the chart below, the $171 level has been important for Atlanta-based Equifax.

In February, the shares were in a steep decline. The selloff ended when it reached this important level.

When this happened, some investors and traders who sold around $171 regretted it. A number of them decided that, if they could, they would buy back their shares at their selling price.

As a result, when the stock dropped back to this price in late March, these people placed buy orders. The large number of these orders created support.

When the shares rallied after, a similar dynamic occurred. Remorseful sellers created support when Equifax dropped back to $171 in April.

This support was broken in May.

When this happened, many of the investors and traders who bought shares at around $171 came to think their decision to do so was a mistake. A number of them decided to hold onto their losing positions.

But they also decided that, if they could do so eventually, they would exit their positions at break-even. Now that Equifax has rallied back to $171, these remorseful buyers are placing sell orders.

These sell orders have created resistance at a price that had been support.

In the financial markets, certain price levels have more importance than others. These are called support and resistance levels.

Good traders can identify these levels. They know when a stock reaches one of them, it will typically reverse or break through.

When trends change and important levels break, traders can find opportunities to profit.

Image: Shutterstock