CenterPoint Energy near Key Support Area

Published on Friday, 13 January 2012 22:52 Written by TradersHuddle Staff

New York, January 13th (TradersHuddle.com) - Shares of CenterPoint Energy, Inc. (NYSE:CNP) finished near calculated support at $18.74.

Current price action with, the Houston, Texas based public utility company closed at $19.09 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.

CenterPoint's current stock range is defined by current calculated support defined at $18.74 and by the resistance level at $20.46.

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 CenterPoint's 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 $20.46 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.