Trading Idea - WESCO Breaking Down?

Published on Friday, 13 August 2010 06:12 Written by Christian Paolinetti

New York, August 13th (TradersHuddle.com) - Shares of WESCO International, Inc. (NYSE:WCC) closed the trading session at $34.55 below calculated support at $34.59 breaking current long setups, raising concerns by the bulls, as this move might give the bears the upper hand.

WESCO International, Inc. (NYSE:WCC) distributes electrical products and other industrial maintenance, repair, and operating supplies. The Company also provides integrated supply services.

WESCO's stock was trading in a well defined range with support at $34.59 and resistance at $36.76; given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous support becomes resistance, as the new range gets defined, however, given that WESCO's stock is still near the broken support, traders will be focusing on $34.59 to see if the stock can bounce back and return to its previous range.

Traders wanting to establish a short position in WESCO can do so if the stock breaks the intraday low, or if the stock bounces back and selling materializes again at previous support of $34.59. For traders wanting to establish a long position, wait for price action to take the stock back to calculated support, which will provide a best entry point to build the position.