Pepco Holdings near Resistance

Published on Friday, 12 March 2010 08:00 Written by TradersHuddle Staff

New York, March 12th (TradersHuddle.com) - Shares of Pepco Holdings, Inc. (NYSE:POM) are trading very close to calculated resistance at $17.24 with the current price action closing at just $17.06 placing the stock near levels that make it difficult to buy.

Pepco Holdings, Inc. (NYSE:POM) is a diversified energy company. The Company primarily distributes, transmits, and supplies electricity and supplies natural gas to customers in New Jersey, Delaware, Maryland, and the District of Columbia.

Pepco's current stock range is defined by current calculated support defined at $15.74 and by the resistance level at $17.24, 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 Pepco Holdings, as the stock is well above support, however, as the stock pulls back towards $15.74 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 $17.24 then traders will get an opportunity to enter Pepco Holdings stock by establishing a position as the stock moves to a higher range.