Plum Creek Timber near Key Resistance Area

Published on Wednesday, 03 February 2010 12:04 Written by Christopher Lynn

New York, jan 3^rd (TradersHuddle.com) - Shares of Plum Creek Timber Company, Inc. (NYSE:PCL) are trading very close to calculated resistance at $39.38 with the current price action closing at just $38.26 placing the stock near levels that make it difficult to buy.

Plum Creek Timber Company, Inc. (NYSE:PCL) grows, harvests, and markets timber and logs, and manufactures forest products such as lumber and plywood. The Company owns timberlands located in the United States. Plum Creek also owns natural resource businesses that focus on mineral extraction and natural gas production

Plum Creek's current stock range is defined by current calculated support defined at $35.9 and by the resistance level at $39.38, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Plum Creek Timber, as the stock is well above support, however, as the stock pulls back towards $35.9 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $39.38 then traders will get an opportunity to enter Plum Creek Timber stock by establishing a position as the stock moves to a higher range.