Shares of Affiliated Computer Services, Inc (NYSE:ACS) closed the trading session at $59.64 below calculated support at $61.36 breaking current long setups, raising concerns by the bulls, as this move might give the bears the upper hand.
Affiliated Computer Services, Inc. (NYSE:ACS) provides diversified business process outsourcing and information technology outsourcing solutions to clients worldwide. The Company serves various industries that include communications, energy, financial services, government, healthcare, insurance, and manufacturing. Some of its IT outsourcing services include data center and midrange server outsourcing, network and desktop outsourcing, and help desk/service desk management. Some of its business process outsourcing services include administrative and insurance consulting services, travel, transportation, and logistics services.
Affiliated Computer’s stock was trading in a well defined range with support at $61.36 and resistance at $65.09; 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 Affiliated Computer’s stock is still near the broken support, traders will be focusing on $61.36 to see if the stock can bounce back and return to its previous range.
Traders wanting to establish a short position in Affiliated Computer can do so if the stock breaks the intraday low, or if the stock bounces back and selling materializes at previous support of $61.36. For traders wanting to establish a long position the current setup is to wait for the stock to get back to calculated support, given that the stock is still near from this level.
Source:http://www.tradershuddle.com/Trading-Ideas/186919192010-trading-idea-affiliated-breaking-down.html
