Trading Idea - Cognizant Technology Solutions Broke Resistance, What to Expect?

Published on Thursday, 02 September 2010 18:40 Written by Christian Paolinetti

New York, September 2nd (TradersHuddle.com) - Shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) closed the trading session at $60.92 just above calculated resistance at $60.75 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) provides custom Information Technology (IT) consulting and technology services as well as outsourcing services. The Company focus in technology strategy consulting, complex systems development, and enterprise software package implementation.

Cognizant's stock was trading in a well defined range with support at $56.55 and resistance at $60.75, 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 Cognizant's stock is still near the broken resistance level, traders will be focusing on $60.75 to see if the stock holds the breakout without rolling over.