Trading Idea - Washington Post Breaking Out?

Published on Wednesday, 10 March 2010 20:24 Written by Christopher Lynn

New York, March 10th (TradersHuddle.com) - Shares of Washington Post Company (NYSE:WPO) closed the trading session at $453.49 just above calculated resistance at $451.65 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

The Washington Post Company (NYSE:WPO) is a diversified education and media company. Its operations include educational services, both domestically and outside the United States, owning and operating cable television systems, newspaper publishing, television broadcasting, and magazine publishing.

Washington Post's stock was trading in a well defined range with support at $403.30 and resistance at $451.65, 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 Washington Post's stock is still near the broken resistance level, traders will be focusing on $451.65 to see if the stock holds the breakout without rolling over.