Republic Breaking Down?

Published on Monday, 08 February 2010 07:30 Written by Christopher Lynn

New York, Feb 8^th (TradersHuddle.com) - Shares of Republic Services, Inc. (NYSE:RSG) closed the trading session at $25.68 below calculated support at $26.5 breaking current long setups, raising concerns by the bulls, as this move might give the bears the upper hand.

Republic Services, Inc. (NYSE:RS) provides non-hazardous solid waste collection and disposal services in the United States. The Company provides solid waste collection services for commercial, industrial, municipal, and residential customers.

Republic's stock was trading in a well defined range with support at $26.5 and resistance at $29.82; 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 Republic's stock is still near the broken support, traders will be focusing on $26.5 to see if the stock can bounce back and return to its previous range.

Traders wanting to establish a short position in Republic can do so if the stock breaks the intraday low, or if the stock bounces back and selling materializes at previous support of $26.5. 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.