Trading Idea - Is Hospira close to Resistance?

Published on Tuesday, 17 January 2012 19:04 Written by Danny Miller

New York, January 17th (TradersHuddle.com) - Shares of Hospira, Inc. (NYSE:HSP) are trading very close to calculated resistance at $32.38 with the current price action closing at just $32.15 placing the stock near levels that make it difficult to buy.

Hospira, Inc. (NYSE:HSP) is a global specialty pharmaceutical and medication delivery company. The Company's product portfolio includes generic acute-care and oncology injectables, as well as integrated infusion therapy and medication management systems.

Hospira's current stock range is defined by current calculated support defined at $29.51 and by the resistance level at $32.38, 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 Hospira, as the stock is well above support, however, as the stock pulls back towards $29.51 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 $32.38 then traders will get an opportunity to enter Hospira stock by establishing a position as the stock moves to a higher range.