Gol Linhas Aereas Inteligentes Waiting for a Break Out?

Published on Thursday, 02 February 2012 07:28 Written by Christian Paolinetti

New York, February 2nd (TradersHuddle.com) - Shares of Gol - Linhas Aereas Inteligentes S.A. (NYSE:GOL) closed the trading session at $7.03 near its 50 day moving average currently set at $7.24. Gol Linhas Aereas Inteligentes' price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 50 day.

Gol - Linhas Aereas Inteligentes S.A. (NYSE:GOL) provides low-fare, non-stop passenger flight services through its fleet of next generation Boeing airplanes. The company provides domestic flights in Brazil.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $6.75 and calculated resistance at $7.40. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by Gol Linhas Aereas Inteligentes shares.

Traders should evaluate their trade if they want to establish a position on Gol Linhas Aereas Inteligentes given the resistance expected as the stock approaches the 50 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price level reference points.