Nexen Approaching its 50 Day

Published on Monday, 05 December 2011 19:44 Written by Christian Paolinetti

New York, December 5th (TradersHuddle.com) - Shares of Nexen Inc. (NYSE:NXY) closed the trading session at $15.73 near its 50 day moving average currently set at $16.19. Nexen'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 50 day.

Nexen Inc. (NYSE:NXY), operates as an energy company and explores for, develops, produces and markets crude oil, natural gas and power. Its oil and gas exploration and development activities are conducted in the North Sea, Canada, Gulf of Mexico, offshore West Africa, and Yemen. Nexen is headquartered in Calgary, Canada.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $14.23 and calculated resistance at $16.78. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by Nexen shares.

Traders should evaluate their trade if they want to establish a position on Nexen 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.