Approaching Resistance - American Tower

Published on Tuesday, 31 January 2012 08:28 Written by TradersHuddle Staff

New York, January 31st (TradersHuddle.com) - Shares of American Tower Corporation (NYSE:AMT) are trading very close to calculated resistance at $62.97 with the current price action closing at just $62.86 placing the stock near levels that make it difficult to buy.

American Tower Corporation (NYSE:AMT) owns, operates, and develops wireless communications and broadcast towers in the United States. The Company leases antennae sites on multi-tenant towers for a diverse range of wireless communications industries. American Tower also offers a variety of network development services.

American Tower's current stock range is defined by current calculated support defined at $55.03 and by the resistance level at $62.97, 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 American Tower, as the stock is well above support, however, as the stock pulls back towards $55.03 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 $62.97 then traders will get an opportunity to enter American Tower stock by establishing a position as the stock moves to a higher range.