Above Resistance - Darden Restaurants

Published on Wednesday, 28 July 2010 04:56 Written by Christian Paolinetti

New York, July 28th (TradersHuddle.com) - Shares of Darden Restaurants, Inc. (NYSE:DRI) closed the trading session at $43.18 just above calculated resistance at $41.44 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

Darden Restaurants, Inc. (NYSE:DRI) operates casual dining restaurants and a high end steakhouse chain in North America. The Company operates restaurants under Red Lobster, Olive Garden, Bahama Breeze, and The Capital Grille names.

Darden's stock was trading in a well defined range with support at $39.25 and resistance at $41.44, 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 Darden's stock is still near the broken resistance level, traders will be focusing on $41.44 to see if the stock holds the breakout without rolling over.