State Street Near to the 50 and 200 Day Moving Averages

Published on Tuesday, 24 January 2012 08:28 Written by Christopher Lynn

New York, January 24th (TradersHuddle.com) - Shares of State Street Corporation (NYSE:STT) closed the trading session at $41.79 near its 50 day and 200 day moving averages currently set at $40.26 and $40.27 respectively. State Street's price action is above these important levels, which could translate into a trading opportunity.

State Street Corporation (NYSE:STT), through its subsidiaries, provides various products and services for the institutional investors worldwide. The company provides securities administration and investment management services. The company serves mutual funds, collective investment funds, corporate and public retirement plans, insurance companies, foundations, endowments, and investment managers.

Although the price action is above important moving averages, it's important to highlight that the 50 day moving average is currently below the 200 day moving average resulting in not a prime setup where buying the dip will present a good trading opportunity.

Looking at peaks and troughs horizontal support and resistance levels, we can see current calculated support at $39.02 and calculated resistance at $43.90. These levels should also be evaluated by traders when planning their trades, as they provide an insight into the latest price action.

If traders want to establish a position on State Street, should evaluate their trade, as it will certainly be better to wait, given that the stock is technically broken with the 50 day moving average trading below the 200 day moving average. Traders can also look at the current range defined by the peaks and troughs see where the current price action of stock is and establish a short trade versus those levels.