Winn-Dixie Stores near Resistance

Published on Friday, 30 December 2011 05:48 Written by Christopher Lynn

New York, December 30th (TradersHuddle.com) - Shares of Winn-Dixie Stores, Inc. (NASDAQ:WINN) are trading very close to calculated resistance at $9.38 with the current price action closing at just $9.34 placing the stock near levels that make it difficult to buy.

Winn-Dixie Stores, Inc. (NASDAQ:WINN) is a food retailer with stores in the South East. The Jacksonville, Florida based company operates a chain of retail self-service food stores, which sell groceries, meats, seafood, fresh produce, bakery, pharmaceuticals, and general merchandise items.

Winn-Dixie's current stock range is defined by current calculated support defined at $5.11 and by the resistance level at $9.38, 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 Winn-Dixie Stores, as the stock is well above support, however, as the stock pulls back towards $5.11 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 $9.38 then traders will get an opportunity to enter Winn-Dixie Stores stock by establishing a position as the stock moves to a higher range.