Approaching Resistance - Sempra Energy

Published on Saturday, 21 January 2012 15:48 Written by Danny Miller

New York, January 21st (TradersHuddle.com) - Shares of Sempra Energy (NYSE:SRE) are trading very close to calculated resistance at $56.36 with the current price action closing at just $56.30 placing the stock near levels that make it difficult to buy.

Sempra Energy (NYSE:SRE) is an energy services holding company with operations throughout the United States, Mexico, and other countries in South America. The Company, through its subsidiaries, generates electricity, delivers natural gas, operates natural gas pipelines and storage facilities, and operates a wind power generation project.

Sempra Energy's current stock range is defined by current calculated support defined at $50.53 and by the resistance level at $56.36, 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 Sempra Energy, as the stock is well above support, however, as the stock pulls back towards $50.53 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 $56.36 then traders will get an opportunity to enter Sempra Energy stock by establishing a position as the stock moves to a higher range.