Rite Aid near Key Resistance Area

Published on Friday, 27 January 2012 06:20 Written by TradersHuddle Staff

New York, January 27th (TradersHuddle.com) - Shares of Rite Aid Corporation (NYSE:RAD) are trading very close to calculated resistance at $1.42 with the current price action closing at just $1.41 placing the stock near levels that make it difficult to buy.

Rite Aid Corporation (NYSE:RAD) operates a retail drugstore chain across various States. The stores sell prescription drugs, nonprescription medications, health aids, cosmetics, and other consumer products.

Rite Aid's current stock range is defined by current calculated support defined at $1.28 and by the resistance level at $1.42, 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 Rite Aid, as the stock is well above support, however, as the stock pulls back towards $1.28 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 $1.42 then traders will get an opportunity to enter Rite Aid stock by establishing a position as the stock moves to a higher range.