Zion Closing in to Resistance

Published on Friday, 19 March 2010 07:00 Written by TradersHuddle Staff

New York, March 19th (TradersHuddle.com) - Shares of Zions Bancorporation (NASDAQ:ZION) are trading very close to calculated resistance at $23.73 with the current price action closing at just $22.73 placing the stock near levels that make it difficult to buy.

Zions Bancorporation (NASDAQ:ZION) is a bank holding company that operates full-service banking offices in western United States. The collection of regional banks also offers an array of investment, mortgage, insurance, and electronic commerce services.

Zions' current stock range is defined by current calculated support defined at $18 and by the resistance level at $23.73, 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 Zion, as the stock is well above support, however, as the stock pulls back towards $18 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 $23.73 then traders will get an opportunity to enter Zion stock by establishing a position as the stock moves to a higher range.