Black & Decker near Key Resistance Area

Published on Friday, 19 February 2010 06:36 Written by TradersHuddle Staff

New York, Feb 19^th (TradersHuddle.com) - Shares of Black & Decker Corporation (NYSE:BDK) are trading very close to calculated resistance at $72.6 with the current price action closing at just $71.36 placing the stock near levels that make it difficult to buy.

Black & Decker Corporation (NYSE:BDK) markets and manufactures a wide range of consumer home improvement products. The Company's products include power tools and accessories, security hardware, fastening and assembly systems, electric cleaning and lighting products, lawn and garden tools, plumbing products, and household products.

Black & Decker's current stock range is defined by current calculated support defined at $67.33 and by the resistance level at $72.6, 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 Black & Decker, as the stock is well above support, however, as the stock pulls back towards $67.33 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 $72.6 then traders will get an opportunity to enter Black & Decker stock by establishing a position as the stock moves to a higher range.