Trading Idea: What to Expect as US Airways Breaks Resistance

Published on Wednesday, 20 June 2012 05:52 Written by TradersHuddle Wire

New York, June 20th (TradersHuddle.com) - Shares of US Airways Group, Inc. (NYSE:LCC) closed the session at $12.70 just above calculated resistance at $12.55. The stock moved to what appears to be a higher range, spurring attention from momentum buyers.

US Airways Group, Inc. (NYSE:LCC) is an air carrier that transports passengers, property, and mail. The Company provides regularly scheduled service at airports in the United States, Canada, Europe, the Caribbean, and Latin America. The airline operates with major hubs in Phoenix, Charlotte and Philadelphia.

The stock was trading in a well defined range with support at $11.18 and resistance at $12.55. Given that this range was broken, traders will be closely monitoring US Airways' 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 US Airways is still near the broken resistance level, traders will be focusing on the $12.55 level to see if the stock holds the breakout without rolling over.