Trading Idea - Torchmark Broke Resistance, What to Expect?

Published on Monday, 15 March 2010 07:16 Written by Christopher Lynn

New York, March 15th (TradersHuddle.com) - Shares of Torchmark Corporation (NYSE:TMK) closed the trading session at $51.15 just above calculated resistance at $50.71 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

Torchmark Corporation (NYSE:TMK) is an insurance and financial services holding company. The company offers life and health insurance, and annuities. Life products include traditional and interest sensitive whole life insurance as well as term life insurance. Health products include Medicare supplement, accident, and limited hospital and surgical coverages.

Torchmark's stock was trading in a well defined range with support at $42.67 and resistance at $50.71, 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 Torchmark's stock is still near the broken resistance level, traders will be focusing on $50.71 to see if the stock holds the breakout without rolling over.