Trading Idea: Is Sanofi-Aventis Breaking Out?

Published on Monday, 10 September 2012 09:28 Written by TradersHuddle Wire

New York, September 10th (TradersHuddle.com) - Shares of Sanofi-Aventis (NYSE:SNY) closed the session at $42.40 just above calculated resistance at $42.30. The stock moved to what appears to be a higher range, spurring attention from momentum buyers.

Sanofi-Aventis (NYSE:SNY) is a global pharmaceutical company that researches, develops and manufactures prescription pharmaceuticals and vaccines. The Company develops cardiovascular, thrombosis, metabolic disorder, central nervous system, internal medicine and oncology drugs, and vaccines.

The stock was trading in a well defined range with support at $36.62 and resistance at $42.30. Given that this range was broken, traders will be closely monitoring Sanofi-Aventis' 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 Sanofi-Aventis is still near the broken resistance level, traders will be focusing on the $42.30 level to see if the stock holds the breakout without rolling over.