Trading Idea - Is Scripps Networks close to Resistance?

Published on Wednesday, 17 March 2010 18:44 Written by Danny Miller

New York, March 17th (TradersHuddle.com) - Shares of Scripps Networks Interactive (NYSE:SNI) are trading very close to calculated resistance at $42.08 with the current price action closing at just $41.47 placing the stock near levels that make it difficult to buy.

Scripps Networks Interactive (NYSE:SNI) operates television and Internet businesses. The Company owns cable networks Home and Garden Television, Food Network, DIY Network, Fine Living Network, and Great American Country. The Interactive services segment provides online comparison shopping and consumer information through Shopzilla and BizRate.

Scripps Networks' current stock range is defined by current calculated support defined at $38.52 and by the resistance level at $42.08, 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 Scripps Networks, as the stock is well above support, however, as the stock pulls back towards $38.52 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 $42.08 then traders will get an opportunity to enter Scripps Networks stock by establishing a position as the stock moves to a higher range.