Sohu.com Close to Resistance

Published on Friday, 12 March 2010 17:56 Written by TradersHuddle Staff

New York, March 12th (TradersHuddle.com) - Shares of Sohu.com Inc. (NASDAQ:SOHU) are trading very close to calculated resistance at $55.67 with the current price action closing at just $54.62 placing the stock near levels that make it difficult to buy.

Sohu.com Inc. (NASDAQ:SOHU) operates an Internet portal in China. The Company's Web site consists of Chinese language Web navigational and search capabilities, Web-based communications services, and a platform for e-commerce services.

Sohu's current stock range is defined by current calculated support defined at $47.75 and by the resistance level at $55.67, 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 Sohu.com, as the stock is well above support, however, as the stock pulls back towards $47.75 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 $55.67 then traders will get an opportunity to enter Sohu.com stock by establishing a position as the stock moves to a higher range.