Reference Points for SPDR S&P Pharmaceuticals

Published on Thursday, 09 February 2012 10:42 Written by TradersHuddle Wire

New York, February 9th (TradersHuddle.com) - Shares of SPDR S&P Pharmaceuticals ETF (NYSE:XPH) closed the trading day at $53.66 close to its 50 day moving average currently set at $51.53. SPDR S&P Pharmaceuticals' price action is just above this important support level translating into a trading opportunity.

SPDR S&P Pharmaceuticals ETF (NYSE:XPH) seeks to replicate the performance of the S&P Pharmaceuticals Select Industry Index. The Index represents the pharmaceuticals sub-industry portion of the S&P Total Stock Market Index. The Fund generally invests all, but at least 95%, of its total assets in the shares of companies comprising the Index.

Looking at peaks and troughs horizontal support and resistance levels, we can see current calculated support at $46.01 and calculated resistance at $51.85. These levels should also be evaluated by traders when planning their trades, as they provide an insight into the latest price action.

Traders wanting to establish a position on SPDR S&P Pharmaceuticals will be looking at the price action for evidence of buying near the 50 day moving average, and opening a position as close as possible to this important level. Also traders will be looking at the latest price action, via the stocks current range previously defined for insights of other key levels that might affect their upside or downside.