Trading Idea - Is Entergy close to Support?

Published on Monday, 15 March 2010 17:44 Written by Christopher Lynn

New York, March 15th (TradersHuddle.com) - Shares of Entergy Corporation (NYSE:ETR) are trading very close to calculated support at $75.25 with current price action closing at just $78.81 places the stock price near levels where traders will start paying attention.

Entergy Corporation (NYSE:ETR) is an integrated energy company that is primarily focused on electric power production and retail electric distribution operations. The Company delivers electricity to utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy also owns and operates nuclear plants in the northern United States. In addition, the company also operates a natural gas distribution business.

Entergy's current stock range is defined by current calculated support defined at $75.25 and by the resistance level at $79.87, which should be used by traders planning their trades.

Traders wanting to establish a position should place close attention to Entergy's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $79.87 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.