Trading Idea - Is International Flavors & Fragrances close to Resistance?

Published on Thursday, 11 March 2010 08:24 Written by Christian Paolinetti

New York, March 11th (TradersHuddle.com) - Shares of International Flavors & Fragrances Inc. (NYSE:IFF) are trading very close to calculated resistance at $44.57 with the current price action closing at just $43.94 placing the stock near levels that make it difficult to buy.

International Flavors & Fragrances Inc. (NYSE:IFF) creates and manufactures flavor and fragrance products. The products are sold to manufacturers of perfumes, cosmetics, soaps and detergents, and its flavor products to manufacturers of prepared foods, beverages, dairy foods, pharmaceuticals, and confectionery products.

International Flavors & Fragrances' current stock range is defined by current calculated support defined at $39.32 and by the resistance level at $44.57, 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 International Flavors & Fragrances , as the stock is well above support, however, as the stock pulls back towards $39.32 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 $44.57 then traders will get an opportunity to enter International Flavors & Fragrances stock by establishing a position as the stock moves to a higher range.