Company Description: Baxter International Inc., through its subsidiaries, develops, manufactures, and markets products for people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions. It operates in three segments: BioScience, Medication Delivery, and Renal. The BioScience segment processes recombinant and plasma-based proteins to treat hemophilia and other bleeding disorders; plasma-based therapies to treat immune deficiencies, alpha 1-antitrypsin deficiency, burns and shock, and other chronic and acute blood-related conditions; products for regenerative medicine, such as biosurgery products; and vaccines. The Medication Delivery segment manufactures intravenous solutions and administration sets; premixed drugs and drug-reconstitution systems; pre-filled vials and syringes for injectable drugs; intravenous nutrition products; infusion pumps; and inhalation anesthetics. It also offers products and services related to pharmacy compounding, drug formulation, and packaging technologies. The Renal segment provides products to treat end-stage renal disease or irreversible kidney failure. It manufactures solutions and other products for peritoneal dialysis, a home-based therapy; and distributes product for hemodialysis, which is conducted in a hospital or clinic. It markets its products to hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, doctors’ offices, clinical and medical research laboratories, and patients at home under physician supervision. The company was founded in 1931 and is based in Deerfield, Illinois.

Our Analysis: The shares of Baxter International, Inc. 'BAX' have been in a downward trend since mid April. Yesterday the shares of 'BAX' closed below a pair of recently established downside support levels on significantly heavier than normal trading volume. This is a bearish trading signal. The shares of 'BAX' should continue to move lower and test $43.56/.share, a point of downside support established on November 27th, of 2006. If the shares of 'BAX' close below that level, then they should continue to move lower and test $38.58/share, the point from which they gapped higher on the open of trading on July 20th of 2006. I see upside resistance on the shares of 'BAX' @ $45.08/share, and have set my stops accordingly at $45.53/share.