Above Resistance: Baxter International

Published on Friday, 27 July 2012 06:48 Written by TradersHuddle Wire

New York, July 27th (TradersHuddle.com) - Shares of Baxter International, Inc. (NYSE:BAX) closed the session at $57.74 just above calculated resistance at $57.24. The stock moved to what appears to be a higher range, spurring attention from momentum buyers.

Baxter International Inc. (NYSE:BAX) develops, manufactures, and markets products and technologies related to hemophilia, immune disorders, infectious diseases, kidney disease, trauma and other chronic medical conditions. The healthcare products are used by hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, doctors' offices, and research laboratories.

The stock was trading in a well defined range with support at $49.73 and resistance at $57.24. Given that this range was broken, traders will be closely monitoring Baxter'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 Baxter International is still near the broken resistance level, traders will be focusing on the $57.24 level to see if the stock holds the breakout without rolling over.