PetSmart near Resistance

Published on Wednesday, 01 February 2012 18:32 Written by Danny Miller

New York, February 1st (TradersHuddle.com) - Shares of PetSmart, Inc. (NASDAQ:PETM) are trading very close to calculated resistance at $54.96 with the current price action closing at just $53.75 placing the stock near levels that make it difficult to buy.

PetSmart, Inc. (NASDAQ:PETM) is a specialty retailer of products and services for pets. The Company operates pet superstores in the United States and Canada and provides pet food and supplies, and offers full-service veterinary, grooming and pet training services.

PetSmart's current stock range is defined by current calculated support defined at $45.27 and by the resistance level at $54.96, 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 PetSmart, as the stock is well above support, however, as the stock pulls back towards $45.27 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 $54.96 then traders will get an opportunity to enter PetSmart stock by establishing a position as the stock moves to a higher range.