Trading Idea - Is Intercontinental Exchange close to Resistance?

Published on Thursday, 02 February 2012 07:16 Written by Danny Miller

New York, February 2nd (TradersHuddle.com) - Shares of Intercontinental Exchange Inc. (NYSE:ICE) are trading very close to calculated resistance at $119.29 with the current price action closing at just $114.69 placing the stock near levels that make it difficult to buy.

Intercontinental Exchange Inc. (NYSE:ICE) operates global commodity and financial products marketplaces. The Company operates electronic energy markets and soft commodity exchanges as well. ICE offers access to contracts based on crude oil and refined products, natural gas, power and emissions, as well as agricultural commodities.

Intercontinental Exchange's current stock range is defined by current calculated support defined at $110.67 and by the resistance level at $119.29, 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 Intercontinental Exchange, as the stock is well above support, however, as the stock pulls back towards $110.67 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 $119.29 then traders will get an opportunity to enter Intercontinental Exchange stock by establishing a position as the stock moves to a higher range.