Tyco Electronics Breaking Out?

Published on Wednesday, 28 July 2010 02:28 Written by Christopher Lynn

New York, July 28th (TradersHuddle.com) - Shares of Tyco Electronics Ltd. (NYSE:TEL) closed the trading session at $27.17 just above calculated resistance at $26.19 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

Tyco Electronics Ltd. (NYSE:TEL) manufactures engineered electronic components, network solutions, undersea telecommunication systems, and wireless systems. The Company provides products for customers in industries ranging from automotive, appliance, and aerospace and defense to telecommunications, computers, and consumer electronics.

Tyco Electronics' stock was trading in a well defined range with support at $23.99 and resistance at $26.19, 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 Tyco Electronics' stock is still near the broken resistance level, traders will be focusing on $26.19 to see if the stock holds the breakout without rolling over.