Trading Idea - Is Warner Chilcott close to Resistance?

Published on Tuesday, 24 January 2012 08:32 Written by Christopher Lynn

New York, January 24th (TradersHuddle.com) - Shares of Warner Chilcott PLC (NASDAQ:WCRX) are trading very close to calculated resistance at $17.58 with the current price action closing at just $17.02 placing the stock near levels that make it difficult to buy.

Warner Chilcott PLC (NASDAQ:WCRX) is an Irish specialty pharmaceutical company. The Company is focused on marketing, selling, developing and manufacturing branded prescription pharmaceutical products in gastroenterology, women's healthcare, urology and dermatology in the United States and Europe.

Warner Chilcot's current stock range is defined by current calculated support defined at $15.95 and by the resistance level at $17.58, 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 Warner Chilcott, as the stock is well above support, however, as the stock pulls back towards $15.95 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 $17.58 then traders will get an opportunity to enter Warner Chilcott stock by establishing a position as the stock moves to a higher range.