Trading Idea - Is Vail Resorts close to Support?

Published on Tuesday, 10 January 2012 05:52 Written by Danny Miller

New York, January 10th (TradersHuddle.com) - Shares of Vail Resorts, Inc. (NYSE:MTN) finished near calculated support at $37.54.

Current price action with, the owner and operator of mountain resorts in the Colorado Rockies closed at $39.13 has left shares at a level that needs to be monitored closely by traders wanting to start or add into a position in the stock.

Vail Resorts' current stock range is defined by current calculated support defined at $37.54 and by the resistance level at $45.34.

The area defined as calculated support, is where we expect for buyers to likely materialize, which could provide a lift to the shares. However, this area if breached will signal participants that the stock failed to entice buyers to step in an support the stock.

Traders wanting to establish a position should pay close attention to Vail Resorts' price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $45.34 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.