Will Gannett recover?

Published on Monday, 08 February 2010 06:57 Written by Christian Paolinetti

New York, Feb 8^th (TradersHuddle.com) - Shares of Gannett Co., Inc. (NYSE:GCI) closed the trading session at $13.53 below calculated support at $14.12 breaking the stock technically, raising concerns by investors, as the move might trigger more selling.

Gannett Co., Inc. (NYSE:GCI) is an international news and information company that publishes various daily newspapers in the United States and the United Kingdom, including "USA TODAY". The news company also operates television stations in major United States markets as well as operates websites offering news, information and advertising.

Gannett's stock was trading in a well defined range with support at $14.12 and resistance at $16.99; given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous support becomes resistance, as the new range gets defined, however, given that Gannett's stock is still near the broken support, traders will be focusing on $14.12 to see if the stock can bounce back and return to its previous range.

Traders wanting to establish a short position in Gannett can do so if the stock breaks the intraday low, or if the stock bounces back and selling materializes at previous support of $14.12. For traders wanting to establish a long position the current setup is to wait for the stock to get back to calculated support, given that the stock is still near from this level.