Trading Idea: What to Expect with Monster Worldwide Breaking Support
Published on Friday, 28 December 2012 05:40 Written by TradersHuddle Wire
New York, December 28th (TradersHuddle.com) - Shares of Monster Worldwide, Inc. (NYSE:MWW) closed the trading session at $5.59 below calculated support at $5.68. The stock broke long setups, prompting the bulls to worry that this move might give the bears the upper hand.
Monster Worldwide, Inc. (NYSE:MWW) through its subsidiaries, offers help wanted advertisements over the Internet. The Company charges employers and human resource professionals to post and search advertisements, and allows job seekers to search job postings and post their resumes free of charge.
Monster's stock was trading in a well defined range with support at $5.68 and resistance at $6.25; 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 support becomes resistance, as the new range gets defined. However, $5.68 will remain in focus as Monster's price action places the stock near the broken support. Traders will be waiting to see if it can bounce back and return to its previous range.
Traders wanting to establish a short position in Monster Worldwide can do so if the stock breaks the intraday low, or if the stock bounces back and selling materializes again at previous support of $5.68. However, if traders want to build a long position, the best entry point to do so is when the price action takes the stock back to calculated support.