GlaxoSmithKline Broke Resistance

Published on Tuesday, 03 July 2012 08:52 Written by TradersHuddle Wire

New York, July 3rd (TradersHuddle.com) - Shares of GlaxoSmithKline plc (NYSE:GSK) closed the session at $46.36 just above calculated resistance at $46.28. The stock effectively broke out and grasped the attention of momentum traders, which could eventually push the stock to a different trading range.

GlaxoSmithKline plc (NYSE:GSK) is a research-based pharmaceutical group that develops, manufactures and markets vaccines, prescription and over-the-counter medicines, as well as health-related consumer products. Its over the counter medicines and health related consumer products are marketed under brand names like Panadol, Nicorette, Breathe Right, Tums, Aquafresh, and Sensodyne among others.

The stock was trading in a well defined range with support at $43.55 and resistance at $46.28. Given that this range was broken, traders will be closely monitoring GlaxoSmithKline'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 GlaxoSmithKline is still near the broken resistance level, traders will be focusing on the $46.28 level to see if the stock holds the breakout without rolling over.