Approaching Resistance - CBS

Published on Wednesday, 10 March 2010 07:08 Written by TradersHuddle Staff

New York, March 10th (TradersHuddle.com) - Shares of CBS Corporation (NYSE:CBS) are trading very close to calculated resistance at $14.85 with the current price action closing at just $14.44 placing the stock near levels that make it difficult to buy.

CBS Corporation (NYSE:CBS) is a media company that operates broadcasting, television production, and publishing businesses. The Company operates television and radio stations, produces and syndicates television programs, publishes books, provides online content as well as provides outdoor advertising.

CBS' current stock range is defined by current calculated support defined at $12.62 and by the resistance level at $14.85, 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 CBS, as the stock is well above support, however, as the stock pulls back towards $12.62 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 $14.85 then traders will get an opportunity to enter CBS stock by establishing a position as the stock moves to a higher range.