Trading Idea - Scripps Networks Broke Resistance, What to Expect?

Published on Tuesday, 09 March 2010 06:00 Written by TradersHuddle Staff

New York, March 9th (TradersHuddle.com) - Shares of Scripps Networks Interactive (NYSE:SNI) closed the trading session at $40.94 just above calculated resistance at $40.74 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

Scripps Networks Interactive (NYSE:SNI) operates television and Internet businesses. The Company owns cable networks Home and Garden Television, Food Network, DIY Network, Fine Living Network, and Great American Country. The Interactive services segment provides online comparison shopping and consumer information through Shopzilla and BizRate.

Scripps Networks' stock was trading in a well defined range with support at $38.52 and resistance at $40.74, 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 Scripps Networks' stock is still near the broken resistance level, traders will be focusing on $40.74 to see if the stock holds the breakout without rolling over.