E*TRADE Poking its Head above Resistance

Published on Wednesday, 02 December 2009 14:06 Written by Gerard Lerod

Dec 2, (TradersHuddle.com) – Shares of E*TRADE Financial Corporation (NASDAQ:ETFC) have struggled for the last few months after reaching their peak back in September, where the “dash for trash” was big as investors were pouring in to low valued stocks in seek of performance.

After the September peak E*Trade price action has been stuck in a very tight range in the “limbo zone” which is the gap between the 200 day simple and exponential moving averages. This gap usually results in a sideways price dynamics that can last for several months, until the stock breaks free above the predefined resistance level.

Yesterday E*Trade saw a move to test resistance on very heavy volume, and today the breakout is starting to materialize as the stock is moving above the “limbo zone”.

If E*Trade manages to close above this level we could see a momentum push towards the $1.95 level.