Trading Idea - Is Spectra Energy close to Support?

Published on Monday, 08 February 2010 20:18 Written by Danny Miller

New York, Feb 8^th (TradersHuddle.com) - Shares of Spectra Energy Corporation (NYSE:SE) are trading very close to calculated support at $20.37 with current price action closing at just $20.76 places the stock price near levels where traders will start paying attention.

Spectra Energy Corporation (NYSE:SE) transmits, stores, distributes, gathers, and processes natural gas. The Company provides transportation and storage of natural gas to customers in various regions of the northeastern and southeastern United States, the Maritime Provinces in Canada and the Pacific Northwest in the United States and Canada, and the province of Ontario, Canada.

Spectra's current stock range is defined by current calculated support defined at $20.37 and by the resistance level at $23.06, which should be used by traders planning their trades.

Traders wanting to establish a position should place close attention to Spectra's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $23.06 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.