NetApp Breaking Out?

Published on Thursday, 02 September 2010 07:00 Written by Christian Paolinetti

New York, September 2nd (TradersHuddle.com) - Shares of NetApp, Inc. (NASDAQ:NTAP) closed the trading session at $41.91 just above calculated resistance at $41.80 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

NetApp, Inc. (NASDAQ:NTAP) provides storage and data management solutions. The storage solutions include specialized hardware, software, and services that provide storage management for open network environments.

NetApp's stock was trading in a well defined range with support at $38.90 and resistance at $41.80, 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 NetApp's stock is still near the broken resistance level, traders will be focusing on $41.80 to see if the stock holds the breakout without rolling over.