Trading Idea - Comcast Broke Resistance, What to Expect?

Published on Thursday, 29 July 2010 06:48 Written by TradersHuddle Staff

New York, July 29th (TradersHuddle.com) - Shares of Comcast Corporation (NASDAQ:CMCSA) closed the trading session at $19.56 just above calculated resistance at $19.35 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

Comcast Corporation (NASDAQ:CMCSA) provides a wide range of cable services. The Company offers a variety of entertainment, information and communications services to residential and commercial customers. Comcasts services include programming, Hi-speed Internet, and broadband phone service. The company is based in Philadelphia, Pennsylvania.

Comcast's stock was trading in a well defined range with support at $18.11 and resistance at $19.35, 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 Comcast's stock is still near the broken resistance level, traders will be focusing on $19.35 to see if the stock holds the breakout without rolling over.