Dick's Closing in to Resistance

Published on Thursday, 11 March 2010 18:52 Written by Danny Miller

New York, March 11th (TradersHuddle.com) - Shares of Dick's Sporting Goods, Inc. (NYSE:DKS) are trading very close to calculated resistance at $26.24 with the current price action closing at just $25.60 placing the stock near levels that make it difficult to buy.

Dick's Sporting Goods, Inc. (NYSE:DKS) is a sporting goods retailer that operates stores primarily in the eastern and central United States. The Company's stores offer a broad selection of brand name sporting goods equipment, apparel, and footwear.

Dick's current stock range is defined by current calculated support defined at $22.08 and by the resistance level at $26.24, 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 Dick's, as the stock is well above support, however, as the stock pulls back towards $22.08 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 $26.24 then traders will get an opportunity to enter Dick's stock by establishing a position as the stock moves to a higher range.