Trading Idea: What to Expect as E*TRADE Breaks Resistance
Published on Monday, 07 January 2013 05:56 Written by TradersHuddle Wire
New York, January 7th (TradersHuddle.com) - Shares of E*TRADE Financial Corporation (NASDAQ:ETFC) closed the session at $9.39 just above calculated resistance at $9.28. The stock effectively broke out and grasped the attention of momentum traders, which could eventually push the stock to a different trading range.
E*TRADE Financial Corporation (NASDAQ:ETFC) provides online brokerage and related products and services primarily to individual retail investors. The company offers investor-focused banking, primarily sweep deposits and savings products.
The stock was trading in a well defined range with support at $8.45 and resistance at $9.28. Given that this range was broken, traders will be closely monitoring E*TRADE'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 E*TRADE is still near the broken resistance level, traders will be focusing on the $9.28 level to see if the stock holds the breakout without rolling over.