Trading Idea - Is BCE close to Resistance?

Published on Wednesday, 18 January 2012 18:44 Written by TradersHuddle Staff

New York, January 18th (TradersHuddle.com) - Shares of BCE Inc. (NYSE:BCE) are trading very close to calculated resistance at $42.51 with the current price action closing at just $41.82 placing the stock near levels that make it difficult to buy.

BCE Inc. (NYSE:BCE), provides a full range of communication services to residential and business customers in Canada. Its services includes local, long distance and wireless phone services, high speed and wireless Internet access, IP-broadband services, value-added business solutions and direct-to-home satellite and VDSL television services.

BCE's current stock range is defined by current calculated support defined at $37.45 and by the resistance level at $42.51, 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 BCE , as the stock is well above support, however, as the stock pulls back towards $37.45 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 $42.51 then traders will get an opportunity to enter BCE stock by establishing a position as the stock moves to a higher range.