Approaching Resistance - Baker Hughes

Published on Wednesday, 01 February 2012 17:52 Written by Christian Paolinetti

New York, February 1st (TradersHuddle.com) - Shares of Baker Hughes Incorporated (NYSE:BHI) are trading very close to calculated resistance at $50.30 with the current price action closing at just $49.58 placing the stock near levels that make it difficult to buy.

Baker Hughes Incorporated (NYSE:BHI) supply wellbore related products, and technology services and systems for drilling, formation evaluation, completion and production, and reservoir technology and consulting to the oil and natural gas industry worldwide. From the reservoir to the refinery the company creates value with high-performance products and services to analyze, drill, evaluate, complete and produce oil and gas reserves and then transport and refine the hydrocarbons.

Baker Hughes' current stock range is defined by current calculated support defined at $45.51 and by the resistance level at $50.30, 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 Baker Hughes, as the stock is well above support, however, as the stock pulls back towards $45.51 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 $50.30 then traders will get an opportunity to enter Baker Hughes stock by establishing a position as the stock moves to a higher range.