Entergy Breaking Out?

Published on Thursday, 18 March 2010 08:21 Written by Christopher Lynn

New York, March 18th (TradersHuddle.com) - Shares of Entergy Corporation (NYSE:ETR) closed the trading session at $80.58 just above calculated resistance at $79.87 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

Entergy Corporation (NYSE:ETR) is an integrated energy company that is primarily focused on electric power production and retail electric distribution operations. The Company delivers electricity to utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy also owns and operates nuclear plants in the northern United States. In addition, the company also operates a natural gas distribution business.

Entergy's stock was trading in a well defined range with support at $75.25 and resistance at $79.87, 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 Entergy's stock is still near the broken resistance level, traders will be focusing on $79.87 to see if the stock holds the breakout without rolling over.