Yingli Green Energy near Resistance

Published on Saturday, 24 December 2011 18:24 Written by Danny Miller

New York, December 24th (TradersHuddle.com) - Shares of Yingli Green Energy Holding Co. Ltd. (NYSE:YGE) are trading very close to calculated resistance at $4.14 with the current price action closing at just $3.95 placing the stock near levels that make it difficult to buy.

Yingli Green Energy Holding Co. Ltd. (NYSE:YGE) designs, manufactures and sells Photovoltaic (PV) modules in China and internationally. The Company also designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or those that operate on a stand-alone basis.

Yingli Green's current stock range is defined by current calculated support defined at $3.50 and by the resistance level at $4.14, 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 Yingli Green Energy, as the stock is well above support, however, as the stock pulls back towards $3.50 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 $4.14 then traders will get an opportunity to enter Yingli Green Energy stock by establishing a position as the stock moves to a higher range.