Is Viacom Breaking Out?

Published on Monday, 08 March 2010 18:48 Written by Christian Paolinetti

New York, March 8th (TradersHuddle.com) - Shares of Viacom Inc. (NYSE:VIA.B) closed the trading session at $30.39 just above calculated resistance at $30.27 moving to what appears to be a new range, as this move will clearly raise the attention of momentum buyers.

Viacom Inc. (NYSE:VIA.B) operates as an entertainment content company It operates in two segments, Media Networks and Filmed Entertainment. The Media Networks segment provides entertainment content to advertisers, content distributors, and retailers across various distribution platforms, the company serves through networks like MTV, Nickelodeon, and Comedy Central. The Filmed Entertainment segment produces, finances, and distributes motion pictures under the Paramount Pictures, MTV, and Nickelodeon movie brands.

Viacom's stock was trading in a well defined range with support at $27.89 and resistance at $30.27, 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 Viacom's stock is still near the broken resistance level, traders will be focusing on $30.27 to see if the stock holds the breakout without rolling over.