Is Aflac Breaking Out?

Published on Wednesday, 18 July 2012 05:56 Written by TradersHuddle Wire

New York, July 18th (TradersHuddle.com) - Shares of Aflac, Inc. (NYSE:AFL) closed the session at $43.61 just above calculated resistance at $43.51. The stock effectively broke out and grasped the attention of momentum traders, which could eventually push the stock to a different trading range.

Aflac, Inc. (NYSE:AFL) and through its subsidiaries, provides supplemental insurance in the United States and Japan. Some of Aflac's products include accident/disability plans, cancer expense plans, short-term disability plans, sickness and hospital indemnity plans, and hospital intensive care plans.

The stock was trading in a well defined range with support at $39.34 and resistance at $43.51. Given that this range was broken, traders will be closely monitoring Aflac'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 Aflac is still near the broken resistance level, traders will be focusing on the $43.51 level to see if the stock holds the breakout without rolling over.