Is E*TRADE Breaking Out?

Published on Wednesday, 13 February 2013 05:48 Written by TradersHuddle Wire

New York, February 13th (TradersHuddle.com) - Shares of E*TRADE Financial Corporation (NASDAQ:ETFC) closed the session at $11.31 just above calculated resistance at $10.95. 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 $10.95. 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 $10.95 level to see if the stock holds the breakout without rolling over.