Above Resistance: WellPoint

Published on Wednesday, 30 January 2013 07:16 Written by TradersHuddle Wire

New York, January 30th (TradersHuddle.com) - Shares of WellPoint Inc. (NYSE:WLP) closed the session at $65.95 just above calculated resistance at $63.01. The stock effectively broke out and grasped the attention of momentum traders, which could eventually push the stock to a different trading range.

WellPoint Inc. (NYSE:WLP) is a health benefits company. The Company provides health, dental and vision benefits, pharmacy benefits, life insurance, and life and disability insurance benefits. WellPoint operations include Blue Cross and Blue Shield plans.

The stock was trading in a well defined range with support at $58.75 and resistance at $63.01. Given that this range was broken, traders will be closely monitoring WellPoint'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 WellPoint is still near the broken resistance level, traders will be focusing on the $63.01 level to see if the stock holds the breakout without rolling over.