Above Resistance: NCR

Published on Monday, 23 April 2012 06:48 Written by TradersHuddle Wire

New York, April 23rd (TradersHuddle.com) - Shares of NCR Corporation (NYSE:NCR) closed the session at $23.31 just above calculated resistance at $22.53. The stock effectively broke out and grasped the attention of momentum traders, which could eventually push the stock to a different trading range.

NCR Corporation (NYSE:NCR) manufactures financial transaction machines and other products. The Company manufactures automated teller machines (ATM), self-checkout and self-service kiosks, point-of-sale workstations and scanners; manufactures printer consumable products; and manages networks and servers for ATMs and kiosks.

The stock was trading in a well defined range with support at $20.40 and resistance at $22.53. Given that this range was broken, traders will be closely monitoring NCR's price action to gather clues on the future direction.

From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that NCR is still near the broken resistance level, traders will be focusing on the $22.53 level to see if the stock holds the breakout without rolling over.