Is Monster Worldwide Breaking Out?

Published on Tuesday, 21 August 2012 05:36 Written by TradersHuddle Wire

New York, August 21st (TradersHuddle.com) - Shares of Monster Worldwide, Inc. (NYSE:MWW) closed the session at $7.24 just above calculated resistance at $6.88. The stock moved to what appears to be a higher range, spurring attention from momentum buyers.

Monster Worldwide, Inc. (NYSE:MWW) through its subsidiaries, offers help wanted advertisements over the Internet. The Company charges employers and human resource professionals to post and search advertisements, and allows job seekers to search job postings and post their resumes free of charge.

The stock was trading in a well defined range with support at $5.72 and resistance at $6.88. Given that this range was broken, traders will be closely monitoring Monster'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 Monster Worldwide is still near the broken resistance level, traders will be focusing on the $6.88 level to see if the stock holds the breakout without rolling over.