Trading Idea - Dun & Bradstreet Broke Support, What to Expect?

Published on Friday, 02 July 2010 07:40 Written by TradersHuddle Staff

New York, July 2nd (TradersHuddle.com) - Shares of Dun & Bradstreet Corporation (NYSE:DNB) closed the trading session at $66.87 below calculated support at $69.35 breaking current long setups, raising concerns by the bulls, as this move might give the bears the upper hand.

The Dun & Bradstreet Corporation (NYSE:DNB) provides business information and technology solutions. The Company's customers use these solutions in order to reduce credit risk, find profitable business partners, manage business relationships and collect cash and receivables. Dun & Bradstreet's database contains information on public and private companies around the world.

Dun & Bradstreet's stock was trading in a well defined range with support at $69.35 and resistance at $73.87; 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 support becomes resistance, as the new range gets defined, however, given that Dun & Bradstreet's stock is still near the broken support, traders will be focusing on $69.35 to see if the stock can bounce back and return to its previous range.

Traders wanting to establish a short position in Dun & Bradstreet can do so if the stock breaks the intraday low, or if the stock bounces back and selling materializes again at previous support of $69.35. For traders wanting to establish a long position, wait for price action to take the stock back to calculated support, which will provide a best entry point to build the position.