Trading Idea - NetApp Breaking Out?

Published on Tuesday, 20 July 2010 07:08 Written by Danny Miller

New York, July 20th (TradersHuddle.com) - Shares of NetApp, Inc. (NASDAQ:NTAP) closed the trading session at $41.02 just above calculated resistance at $40.95 moving to what appears to be a new range, as this move will clearly raise the attention of momentum buyers.

NetApp, Inc. (NASDAQ:NTAP) provides storage and data management solutions. The storage solutions include specialized hardware, software, and services that provide storage management for open network environments.

NetApp's stock was trading in a well defined range with support at $36.66 and resistance at $40.95, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that NetApp's stock is still near the broken resistance level, traders will be focusing on $40.95 to see if the stock holds the breakout without rolling over.