Approaching Resistance - Computer Sciences

Published on Tuesday, 31 January 2012 08:00 Written by Danny Miller

New York, January 31st (TradersHuddle.com) - Shares of Computer Sciences Corporation (NYSE:CSC) are trading very close to calculated resistance at $26.56 with the current price action closing at just $25.93 placing the stock near levels that make it difficult to buy.

Computer Sciences Corporation (NYSE:CSC) provides consulting and information technology (IT) services to industry and government. The Company provides consulting, systems design and integration, IT and business process outsourcing, applications software, and Web and application hosting.

Computer Sciences' current stock range is defined by current calculated support defined at $23.27 and by the resistance level at $26.56, 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 Computer Sciences, as the stock is well above support, however, as the stock pulls back towards $23.27 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 $26.56 then traders will get an opportunity to enter Computer Sciences stock by establishing a position as the stock moves to a higher range.