Altera near Key Resistance Area

Published on Wednesday, 25 January 2012 07:48 Written by Christopher Lynn

New York, January 25th (TradersHuddle.com) - Shares of Altera Corporation (NASDAQ:ALTR) are trading very close to calculated resistance at $41.62 with the current price action closing at just $40.12 placing the stock near levels that make it difficult to buy.

Altera Corporation (NASDAQ:ALTR) designs, manufactures, and markets programmable logic devices and associated development tools. The Company's products, include a variety of programmable logic devices and hardcopy application-specific integrated circuits. Altera serves customers primarily in the communications, computer and storage, industrial, and consumer sectors

Altera's current stock range is defined by current calculated support defined at $36.66 and by the resistance level at $41.62, 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 Altera, as the stock is well above support, however, as the stock pulls back towards $36.66 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 $41.62 then traders will get an opportunity to enter Altera stock by establishing a position as the stock moves to a higher range.