Trading Idea - Sysco Breaking Out?

Published on Wednesday, 28 July 2010 01:12 Written by Christian Paolinetti

New York, July 28th (TradersHuddle.com) - Shares of Sysco Corporation (NYSE:SYY) closed the trading session at $30.95 just above calculated resistance at $30.23 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

Sysco Corporation (NYSE:SYY) distributes food and related products primarily to the foodservice industry. The Company also distributes personal care guest amenities, housekeeping supplies, room accessories, and textiles to the lodging industry.

Sysco's stock was trading in a well defined range with support at $28.13 and resistance at $30.23, 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 Sysco's stock is still near the broken resistance level, traders will be focusing on $30.23 to see if the stock holds the breakout without rolling over.