Trading Idea - Is Itron close to Resistance?

Published on Tuesday, 24 January 2012 08:40 Written by Danny Miller

New York, January 24th (TradersHuddle.com) - Shares of Itron, Inc. (NASDAQ:ITRI) are trading very close to calculated resistance at $39.57 with the current price action closing at just $38.89 placing the stock near levels that make it difficult to buy.

Itron, Inc. (NASDAQ:ITRI) provides solutions for collecting, communicating, and analyzing electric, gas, and water usage data. The Company sells its products to the utility industry. Itron designs, manufactures, markets, sells, installs, and services hardware, software, and integrated systems for handheld computer-based electronic meter reading and automatic meter reading systems.

Itron's current stock range is defined by current calculated support defined at $33.41 and by the resistance level at $39.57, 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 Itron, as the stock is well above support, however, as the stock pulls back towards $33.41 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 $39.57 then traders will get an opportunity to enter Itron stock by establishing a position as the stock moves to a higher range.