Above Resistance: E*TRADE

Published on Tuesday, 29 January 2013 05:56 Written by TradersHuddle Wire

New York, January 29th (TradersHuddle.com) - Shares of E*TRADE Financial Corporation (NASDAQ:ETFC) closed the session at $10.6 just above calculated resistance at $10.46. The stock moved to what appears to be a higher range, spurring attention from momentum buyers.

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 $9.87 and resistance at $10.46. 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 $10.46 level to see if the stock holds the breakout without rolling over.