Trading Idea - Is Aflac close to Resistance?

Published on Tuesday, 31 January 2012 08:24 Written by Danny Miller

New York, January 31st (TradersHuddle.com) - Shares of Aflac, Inc. (NYSE:AFL) are trading very close to calculated resistance at $49.59 with the current price action closing at just $48.41 placing the stock near levels that make it difficult to buy.

Aflac, Inc. (NYSE:AFL) and through its subsidiaries, provides supplemental insurance in the United States and Japan. Some of Aflac's products include accident/disability plans, cancer expense plans, short-term disability plans, sickness and hospital indemnity plans, and hospital intensive care plans.

Aflac's current stock range is defined by current calculated support defined at $42.30 and by the resistance level at $49.59, 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 Aflac, as the stock is well above support, however, as the stock pulls back towards $42.30 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 $49.59 then traders will get an opportunity to enter Aflac stock by establishing a position as the stock moves to a higher range.