Dun & Bradstreet Dipping Below Support

Published on Tuesday, 09 February 2010 18:44 Written by Christopher Lynn

New York, Feb 9^th (TradersHuddle.com) - Shares of Dun & Bradstreet Corporation (NYSE:DNB) closed the trading session at $71.04 below calculated support at $71.21 breaking current long setups, raising concerns by the bulls, as this move might give the bears the upper hand.

The Dun & Bradstreet Corporation (NYSE:DNB) provides business information and technology solutions. The Company's customers use these solutions in order to reduce credit risk, find profitable business partners, manage business relationships and collect cash and receivables. Dun & Bradstreet's database contains information on public and private companies around the world.

Dun & Bradstreet's stock was trading in a well defined range with support at $71.21 and resistance at $82.61; 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 Dun & Bradstreet's stock is still near the broken support, traders will be focusing on $71.21 to see if the stock can bounce back and return to its previous range.

Traders wanting to establish a short position in Dun & Bradstreet can do so if the stock breaks the intraday low, or if the stock bounces back and selling materializes at previous support of $71.21. 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.