Is Autodesk Breaking Out?

Published on Wednesday, 10 March 2010 08:04 Written by Christopher Lynn

New York, March 10th (TradersHuddle.com) - Shares of Autodesk, Inc. (NASDAQ:ADSK) closed the trading session at $29.06 just above calculated resistance at $28.94 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

Autodesk, Inc. (NASDAQ:ADSK) supplies two-dimensional and three-dimensional design software products that are used across industries and in the home for architectural design, mechanical design, geographic information systems and mapping, and visualization applications. Autodesk's software products are sold worldwide through a network of dealers and distributors. AutoCAD, the company's flagship product, aids design for 2D drafting and 3D visualization.

Autodesk's stock was trading in a well defined range with support at $22.50 and resistance at $28.94, 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 Autodesk's stock is still near the broken resistance level, traders will be focusing on $28.94 to see if the stock holds the breakout without rolling over.