Approaching Resistance - CNA Financial

Published on Tuesday, 13 December 2011 18:24 Written by Christian Paolinetti

New York, December 13th (TradersHuddle.com) - Shares of CNA Financial Corporation (NYSE:CNA) are trading very close to calculated resistance at $26.50 with the current price action closing at just $25.69 placing the stock near levels that make it difficult to buy.

CNA Financial Corporation (NYSE:CNA) operates as an insurance holding company and, through its subsidiaries, provides commercial property and casualty coverages. Its services include risk management, information services, warranty and claims administration.

CNA's current stock range is defined by current calculated support defined at $23.98 and by the resistance level at $26.50, 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 CNA Financial, as the stock is well above support, however, as the stock pulls back towards $23.98 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 $26.50 then traders will get an opportunity to enter CNA Financial stock by establishing a position as the stock moves to a higher range.