Trading Idea - SCANA Breaking Down?

Published on Monday, 08 February 2010 20:28 Written by TradersHuddle Staff

New York, Feb 8^th (TradersHuddle.com) - Shares of SCANA Corporation (NYSE:SCG) closed the trading session at $34.73 below calculated support at $35.311 breaking current long setups, raising concerns by the bulls, as this move might give the bears the upper hand.

SCANA Corporation (NYSE:SCG) is a holding company involved in regulated electric and natural gas utility operations, telecommunications, and other energy-related businesses. The Company serves electric customers in South Carolina and natural gas customers in South Carolina, North Carolina, and Georgia.

SCANA's stock was trading in a well defined range with support at $35.311 and resistance at $38.02; 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 SCANA's stock is still near the broken support, traders will be focusing on $35.311 to see if the stock can bounce back and return to its previous range.

Traders wanting to establish a short position in SCANA can do so if the stock breaks the intraday low, or if the stock bounces back and selling materializes at previous support of $35.311. 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.