Trading Idea - Sequenom Broke Resistance, What to Expect?

Published on Wednesday, 01 September 2010 07:16 Written by Danny Miller

New York, September 1st (TradersHuddle.com) - Shares of Sequenom Inc. (NASDAQ:SQNM) closed the trading session at $6.16 just above calculated resistance at $6.00 moving to what appears to be a new range, as this move will clearly raise the attention of momentum buyers.

Sequenom Inc. (NASDAQ:SQNM) provides genetic analysis products that translate genomic science into solutions for biomedical research, agricultural applications, molecular medicine and non-invasive prenatal diagnostics research.

Sequenom's stock was trading in a well defined range with support at $5.50 and resistance at $6.00, 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 resistance becomes support, as the new range gets defined, however, given that Sequenom's stock is still near the broken resistance level, traders will be focusing on $6.00 to see if the stock holds the breakout without rolling over.