Trading Idea: What to Expect as BB&T Breaks Resistance
Published on Thursday, 03 January 2013 07:24 Written by TradersHuddle Wire
New York, January 3rd (TradersHuddle.com) - Shares of BB&T Corporation (NYSE:BBT) closed the session at $30.07 just above calculated resistance at $29.77. The stock effectively broke out and grasped the attention of momentum traders, which could eventually push the stock to a different trading range.
BB&T Corporation (NYSE:BBT) operates banking locations in North and South Carolina, Georgia, Virginia, Maryland, West Virginia, Kentucky, Alabama, Indiana, Washington D.C., Florida and Tennessee. The Company offers full-service commercial and retail banking, as well as insurance, retail brokerage, corporate finance, and international banking.
The stock was trading in a well defined range with support at $26.86 and resistance at $29.77. Given that this range was broken, traders will be closely monitoring BB&T's price action to gather clues on the future direction.
From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that BB&T is still near the broken resistance level, traders will be focusing on the $29.77 level to see if the stock holds the breakout without rolling over.