Trading Idea - Assurant Breaking Out?

Published on Wednesday, 10 March 2010 18:40 Written by Danny Miller

New York, March 10th (TradersHuddle.com) - Shares of Assurant, Inc. (NYSE:AIZ) closed the trading session at $32.61 just above calculated resistance at $31.14 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

Assurant, Inc. (NYSE:AIZ) provides specialized insurance and insurance-related products. The insurer offers individual and small employer group health insurance, group dental insurance, pre-funded funeral insurance, group disability and life insurance, creditor-placed homeowners insurance, manufactured housing homeowners insurance, debt protection administration, credit insurance, and warranties.

Assurant's stock was trading in a well defined range with support at $29.08 and resistance at $31.14, 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 Assurant's stock is still near the broken resistance level, traders will be focusing on $31.14 to see if the stock holds the breakout without rolling over.