National-Oilwell Varco Approaching its 50 Day

Published on Tuesday, 09 March 2010 19:16 Written by TradersHuddle Staff

New York, March 9th (TradersHuddle.com) - Shares of National-Oilwell Varco Inc. (NYSE:NOV) closed the trading session at $43.44 near its 50 day moving average currently set at $44.22. National-Oilwell Varco's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 50 day.

National-Oilwell Varco Inc. (NYSE:NOV) designs, manufactures, and sells machinery, equipment, and downhole products used in oil and gas drilling and production. The Company also provides oilfield inspection and other services, and supply chain integration services to the upstream oil and gas industry.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $41.95 and calculated resistance at $44.70. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by National-Oilwell Varco shares.

Traders should evaluate their trade if they want to establish a position on National-Oilwell Varco given the resistance expected as the stock approaches the 50 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price level reference points.