Dick's Closing in to Resistance

Published on Tuesday, 10 January 2012 05:24 Written by Danny Miller

New York, January 10th (TradersHuddle.com) - Shares of Dick's Sporting Goods, Inc. (NYSE:DKS) are trading very close to calculated resistance at $36.92 with the current price action closing at just $35.78 placing the stock near levels that make it difficult to buy.

Dick's Sporting Goods, Inc. (NYSE:DKS) is a sporting goods retailer that operates stores primarily in the eastern and central United States. The Company's stores offer a broad selection of brand name sporting goods equipment, apparel, and footwear.

Dick's current stock range is defined by current calculated support defined at $34.42 and by the resistance level at $36.92, 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 Dick's, as the stock is well above support, however, as the stock pulls back towards $34.42 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 $36.92 then traders will get an opportunity to enter Dick's stock by establishing a position as the stock moves to a higher range.