PetSmart Breaking Out?

Published on Wednesday, 10 March 2010 17:56 Written by Danny Miller

New York, March 10th (TradersHuddle.com) - Shares of PetSmart, Inc. (NASDAQ:PETM) closed the trading session at $31.10 just above calculated resistance at $30.49 moving to what appears to be a new range, as this move will clearly raise the attention of momentum buyers.

PetSmart, Inc. (NASDAQ:PETM) is a specialty retailer of products and services for pets. The Company operates pet superstores in the United States and Canada and provides pet food and supplies, and offers full-service veterinary, grooming and pet training services.

PetSmart's stock was trading in a well defined range with support at $25.09 and resistance at $30.49, 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 PetSmart's stock is still near the broken resistance level, traders will be focusing on $30.49 to see if the stock holds the breakout without rolling over.