Above Resistance - Massey

Published on Friday, 12 March 2010 17:40 Written by Danny Miller

New York, March 12th (TradersHuddle.com) - Shares of Massey Energy Company (NYSE:MEE) closed the trading session at $50.29 just above calculated resistance at $50.09 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

Massey Energy Company (NYSE:MEE) produces, processes, and sells bituminous, low sulfur coal of steam and metallurgical grades. The Company currently operates coal mines in West Virginia, Kentucky, and Virginia. Massey provides its coal to utility, industrial, and metallurgical customers.

Massey's stock was trading in a well defined range with support at $40.41 and resistance at $50.09, 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 Massey's stock is still near the broken resistance level, traders will be focusing on $50.09 to see if the stock holds the breakout without rolling over.