Trading Idea - Waters Breaking Out?

Published on Thursday, 11 March 2010 19:16 Written by Christian Paolinetti

New York, March 11th (TradersHuddle.com) - Shares of Waters Corporation (NYSE:WAT) closed the trading session at $65.33 just above calculated resistance at $64.45 moving to what appears to be a new range, as this move will clearly raise the attention of momentum buyers.

Waters Corporation (NYSE:WAT) provides high-performance liquid chromatography products and services. The Company distributes its products worldwide to a wide range of industries such as pharmaceuticals, chemicals, and environmental testing.

Waters' stock was trading in a well defined range with support at $58.05 and resistance at $64.45, 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 Waters' stock is still near the broken resistance level, traders will be focusing on $64.45 to see if the stock holds the breakout without rolling over.