Trading Idea - Millicom Breaking Out?

Published on Sunday, 01 August 2010 20:36 Written by TradersHuddle Staff

New York, August 1st (TradersHuddle.com) - Shares of Millicom International Cellular S.A. (NASDAQ:MICC) closed the trading session at $93.22 just above calculated resistance at $92.97 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

Millicom International Cellular S.A. (NASDAQ:MICC) develops and operates cellular telephone systems worldwide. The Company has interests in cellular systems primarily in emerging markets in Asia, Latin America, Europe, and Africa.

Millicom's stock was trading in a well defined range with support at $84.08 and resistance at $92.97, 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 Millicom's stock is still near the broken resistance level, traders will be focusing on $92.97 to see if the stock holds the breakout without rolling over.