Key Level for Lan Airlines

Published on Monday, 21 November 2011 19:16 Written by TradersHuddle Staff

New York, November 21st (TradersHuddle.com) - Shares of Lan Airlines S.A. (NYSE:LFL) closed the trading session at $23.15 near its 50 day moving average currently set at $23.63. Lan Airlines' price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 50 day.

Lan Airlines S.A. (NYSE:LFL) provides domestic and international passenger and cargo air services. The Company operates in Chile, the United States, the South Pacific, Europe, and Latin America.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $23.79 and calculated resistance at $25.34. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by Lan Airlines shares.

Traders should evaluate their trade if they want to establish a position on Lan Airlines given the resistance expected as the stock approaches the 50 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price level reference points.