Patience with Viacom

Published on Sunday, 04 December 2011 10:52 Written by Christopher Lynn

New York, December 4th (TradersHuddle.com) - Shares of Viacom Inc. (NYSE:VIA.B) closed the trading session at $44.76 near its 200 day moving average currently set at $46.24. Viacom's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 200 day moving average.

Viacom Inc. (NYSE:VIA.B) operates as an entertainment content company It operates in two segments, Media Networks and Filmed Entertainment. The Media Networks segment provides entertainment content to advertisers, content distributors, and retailers across various distribution platforms, the company serves through networks like MTV, Nickelodeon, and Comedy Central. The Filmed Entertainment segment produces, finances, and distributes motion pictures under the Paramount Pictures, MTV, and Nickelodeon movie brands.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $41.58 and calculated resistance at $46.12. These levels are being closely watched by traders, as they provide great reference points for the latest price dynamics in Viacom shares.

Traders should evaluate their trade if they want to establish a position on Viacom given the resistance could materialize as the stock approaches the 200 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, traders need to exercise patience. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price action reference points.