KeyCorp Close to 50 and 200 Day Moving Averages

Published on Thursday, 02 February 2012 05:56 Written by Danny Miller

New York, February 2nd (TradersHuddle.com) - Shares of KeyCorp (NYSE:KEY) closed the trading session at $7.85 near its 50 day and 200 day moving averages currently set at $7.60 and $7.48 respectively. KeyCorp's price action is above these important levels, which could translate into a trading opportunity.

KeyCorp (NYSE:KEY) operates as a holding company for KeyBank National Association that provides various banking services in the United States. The Company provides a wide range of retail and commercial banking, commercial leasing, investment management, consumer finance and investment banking products and services to individual, corporate and institutional clients.

Although the price action is above important moving averages, it's important to highlight that the 50 day moving average is currently above the 200 day moving average, signaling that the stock is not technically broken from the long side and buying the dip strategy might be the best setup out there.

Looking at peaks and troughs horizontal support and resistance levels, we can see current calculated support at $7.74 and calculated resistance at $8.44. These levels should also be evaluated by traders when planning their trades, as they provide an insight into the latest price action.

If traders want to establish a position on KeyCorp need to place special attention to the stock price action and establish a position as close to the moving averages as possible. Also traders need to consider the latest price action, via the stocks current range defined by the peaks and troughs algorithm, not forgetting that if the stock had a wild move outside its range, it would certianly take a few days to establish support and resistance.