Trading Idea - Is Waters close to Resistance?

Published on Friday, 27 January 2012 08:12 Written by Christian Paolinetti

New York, January 27th (TradersHuddle.com) - Shares of Waters Corporation (NYSE:WAT) are trading very close to calculated resistance at $88.54 with the current price action closing at just $86.95 placing the stock near levels that make it difficult to buy.

Waters Corporation (NYSE:WAT) provides high-performance liquid chromatography products and services. The Company distributes its products worldwide to a wide range of industries such as pharmaceuticals, chemicals, and environmental testing.

Waters' current stock range is defined by current calculated support defined at $70.88 and by the resistance level at $88.54, 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 Waters, as the stock is well above support, however, as the stock pulls back towards $70.88 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 $88.54 then traders will get an opportunity to enter Waters stock by establishing a position as the stock moves to a higher range.