Approaching Resistance - Molson Coors Brewing

Published on Monday, 23 January 2012 06:52 Written by Christopher Lynn

New York, January 23rd (TradersHuddle.com) - Shares of Molson Coors Brewing Company (NYSE:TAP) are trading very close to calculated resistance at $45.06 with the current price action closing at just $44.00 placing the stock near levels that make it difficult to buy.

Molson Coors Brewing Company (NYSE:TAP) brews beer through breweries in Canada, the United States and the United Kingdom. The company brews Coors Light, Canadian, Molson Dry, Miller Lite, and Miller Genuine Draft, among others. Molson Coors also distributes Amstel Light, Heineken, Corona, Pacifico, and Asahi.

Molson Coors' current stock range is defined by current calculated support defined at $37.99 and by the resistance level at $45.06, 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 Molson Coors Brewing, as the stock is well above support, however, as the stock pulls back towards $37.99 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 $45.06 then traders will get an opportunity to enter Molson Coors Brewing stock by establishing a position as the stock moves to a higher range.