Nexen Closing in to Resistance

Published on Thursday, 12 January 2012 19:28 Written by Danny Miller

New York, January 12th (TradersHuddle.com) - Shares of Nexen Inc. (NYSE:NXY) are trading very close to calculated resistance at $18.36 with the current price action closing at just $17.86 placing the stock near levels that make it difficult to buy.

Nexen Inc. (NYSE:NXY), operates as an energy company and explores for, develops, produces and markets crude oil, natural gas and power. Its oil and gas exploration and development activities are conducted in the North Sea, Canada, Gulf of Mexico, offshore West Africa, and Yemen. Nexen is headquartered in Calgary, Canada.

Nexen's current stock range is defined by current calculated support defined at $13.63 and by the resistance level at $18.36, 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 Nexen, as the stock is well above support, however, as the stock pulls back towards $13.63 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 $18.36 then traders will get an opportunity to enter Nexen stock by establishing a position as the stock moves to a higher range.