Trading Idea - Is Thermo Fisher close to Resistance?

Published on Monday, 23 January 2012 19:40 Written by Christopher Lynn

New York, January 23rd (TradersHuddle.com) - Shares of Thermo Fisher Scientific, Inc. (NYSE:TMO) are trading very close to calculated resistance at $52.00 with the current price action closing at just $51.83 placing the stock near levels that make it difficult to buy.

Thermo Fisher Scientific, Inc. (NYSE:TMO) manufactures scientific instruments, consumables, and chemicals. The Company offers analytical instruments, laboratory equipment, software, services, consumables, reagents, chemicals, and supplies to pharmaceutical and biotech companies, hospitals and clinical diagnostic labs, universities, research institutions, and government agencies.

Thermo Fisher's current stock range is defined by current calculated support defined at $43.06 and by the resistance level at $52.00, 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 Thermo Fisher, as the stock is well above support, however, as the stock pulls back towards $43.06 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 $52.00 then traders will get an opportunity to enter Thermo Fisher stock by establishing a position as the stock moves to a higher range.