Approaching Resistance - Washington Post

Published on Friday, 27 January 2012 06:00 Written by Christopher Lynn

New York, January 27th (TradersHuddle.com) - Shares of Washington Post Company (NYSE:WPO) are trading very close to calculated resistance at $405.00 with the current price action closing at just $394.49 placing the stock near levels that make it difficult to buy.

The Washington Post Company (NYSE:WPO) is a diversified education and media company. Its operations include educational services, both domestically and outside the United States, owning and operating cable television systems, newspaper publishing, television broadcasting, and magazine publishing.

Washington Post's current stock range is defined by current calculated support defined at $363.40 and by the resistance level at $405.00, 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 Washington Post, as the stock is well above support, however, as the stock pulls back towards $363.40 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 $405.00 then traders will get an opportunity to enter Washington Post stock by establishing a position as the stock moves to a higher range.