National-Oilwell Varco Moving Above Resistance

Published on Wednesday, 21 July 2010 05:00 Written by Christopher Lynn

New York, July 21st (TradersHuddle.com) - Shares of National-Oilwell Varco Inc. (NYSE:NOV) closed the trading session at $37.39 just above calculated resistance at $36.52 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

National-Oilwell Varco Inc. (NYSE:NOV) designs, manufactures, and sells machinery, equipment, and downhole products used in oil and gas drilling and production. The Company also provides oilfield inspection and other services, and supply chain integration services to the upstream oil and gas industry.

National-Oilwell Varco's stock was trading in a well defined range with support at $32.18 and resistance at $36.52, 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 National-Oilwell Varco's stock is still near the broken resistance level, traders will be focusing on $36.52 to see if the stock holds the breakout without rolling over.