Trading Idea - Intercontinental Exchange Broke Resistance, What to Expect?

Published on Friday, 12 March 2010 08:20 Written by Danny Miller

New York, March 12th (TradersHuddle.com) - Shares of Intercontinental Exchange Inc. (NYSE:ICE) closed the trading session at $111.66 just above calculated resistance at $110.40 moving to what appears to be a new range, as this move will clearly raise the attention of momentum buyers.

Intercontinental Exchange Inc. (NYSE:ICE) operates global commodity and financial products marketplaces. The Company operates electronic energy markets and soft commodity exchanges as well. ICE offers access to contracts based on crude oil and refined products, natural gas, power and emissions, as well as agricultural commodities.

Intercontinental Exchange's stock was trading in a well defined range with support at $94.45 and resistance at $110.40, 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 Intercontinental Exchange's stock is still near the broken resistance level, traders will be focusing on $110.40 to see if the stock holds the breakout without rolling over.