Novell Broke Resistance

Published on Monday, 22 February 2010 07:45 Written by Christopher Lynn

New York, Feb 22^nd (TradersHuddle.com) - Shares of Novell, Inc. (NASDAQ:NOVL) closed the trading session at $4.93 just above calculated resistance at $4.9 moving to what appears to be a new range, as this move will clearly raise the attention of momentum buyers.

Novell, Inc. (NASDAQ:NOVL) provides network and Internet directory software and services. The Company's Internet solutions integrate a range of computer platforms, applications, services, and devices. Novell offers developer, education, consulting, and technical support programs.

Novell's stock was trading in a well defined range with support at $4.6 and resistance at $4.9, 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 resistance becomes support, as the new range gets defined, however, given that Novell's stock is still near the broken resistance level, traders will be focusing on $4.9 to see if the stock holds the breakout without rolling over.