Loews Close to Resistance

Published on Friday, 12 March 2010 18:04 Written by Christopher Lynn

New York, March 12th (TradersHuddle.com) - Shares of Loews Corporation (NYSE:L) are trading very close to calculated resistance at $37.70 with the current price action closing at just $37.56 placing the stock near levels that make it difficult to buy.

Loews Corporation (NYSE:L) is a diversified holding company. The Company, through its subsidiaries, is involved in a variety of businesses including commercial property-casualty insurance, offshore drilling, natural gas exploration and production, operation of natural gas pipeline systems, and the operation of hotels and resorts.

Loews' current stock range is defined by current calculated support defined at $34.24 and by the resistance level at $37.70, 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 Loews, as the stock is well above support, however, as the stock pulls back towards $34.24 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 $37.70 then traders will get an opportunity to enter Loews stock by establishing a position as the stock moves to a higher range.