Novell near Resistance

Published on Monday, 22 February 2010 20:03 Written by Christian Paolinetti

New York, Feb 22^nd (TradersHuddle.com) - Shares of Novell, Inc. (NASDAQ:NOVL) are trading very close to calculated resistance at $5.05 with the current price action closing at just $4.92 placing the stock near levels that make it difficult to buy.

Novell, Inc. (NASDAQ:NOVL) provides network and Internet directory software and services. The Company's Internet solutions integrate a range of computer platforms, applications, services, and devices. Novell offers developer, education, consulting, and technical support programs.

Novell's current stock range is defined by current calculated support defined at $4.6 and by the resistance level at $5.05, 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 Novell, as the stock is well above support, however, as the stock pulls back towards $4.6 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 $5.05 then traders will get an opportunity to enter Novell stock by establishing a position as the stock moves to a higher range.