Apache near Resistance

Published on Thursday, 11 March 2010 19:20 Written by Christopher Lynn

New York, March 11th (TradersHuddle.com) - Shares of Apache Corporation (NYSE:APA) are trading very close to calculated resistance at $107.46 with the current price action closing at just $106.94 placing the stock near levels that make it difficult to buy.

Apache Corporation (NYSE:APA), together with its subsidiaries, engages in the exploration, development, and production of natural gas, crude oil, and natural gas liquids. The company sells its natural gas to local distribution companies, utilities, end-users, integrated oil and gas companies, and marketers; and crude oil to integrated oil companies, purchasers, transporters, and refiners.

Apache's current stock range is defined by current calculated support defined at $100.07 and by the resistance level at $107.46, 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 Apache, as the stock is well above support, however, as the stock pulls back towards $100.07 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 $107.46 then traders will get an opportunity to enter Apache stock by establishing a position as the stock moves to a higher range.