Trading Idea - Tenet Healthcare Breaking Out?

Published on Friday, 03 September 2010 06:32 Written by Danny Miller

New York, September 3rd (TradersHuddle.com) - Shares of Tenet Healthcare Corporation (NYSE:THC) closed the trading session at $4.33 just above calculated resistance at $4.31 moving to what appears to be a new range, as this move will clearly raise the attention of momentum buyers.

Tenet Healthcare Corporation (NYSE:THC) owns or operates general hospitals and related health care facilities serving communities in the United States. The Dallas, Texas company operates rehabilitation hospitals, specialty hospitals, long-term care facilities, psychiatric facilities, and medical office buildings near its general hospitals, as well as ancillary health care businesses.

Tenet's stock was trading in a well defined range with support at $3.92 and resistance at $4.31, 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 Tenet's stock is still near the broken resistance level, traders will be focusing on $4.31 to see if the stock holds the breakout without rolling over.