Viacom near Support

Published on Sunday, 27 November 2011 21:52 Written by Danny Miller

New York, November 27th (TradersHuddle.com) - Shares of Viacom Inc. (NYSE:VIA.B) finished near calculated support at $39.86.

Current price action with, the owner of the MTV, Nickelodeon, and Comedy Central cable networks closed at $41.61 has left shares at a level that needs to be monitored closely by traders wanting to start or add into a position in the stock.

Viacom's current stock range is defined by current calculated support defined at $39.86 and by the resistance level at $46.12.

The area defined as calculated support, is where we expect for buyers to likely materialize, which could provide a lift to the shares. However, this area if breached will signal participants that the stock failed to entice buyers to step in an support the stock.

Traders wanting to establish a position should pay close attention to Viacom'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 $46.12 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.