Aetna near Key Resistance Area

Published on Friday, 03 February 2012 05:32 Written by TradersHuddle Staff

New York, February 3rd (TradersHuddle.com) - Shares of Aetna, Inc. (NYSE:AET) are trading very close to calculated resistance at $45.75 with the current price action closing at just $44.79 placing the stock near levels that make it difficult to buy.

Aetna Inc. (NYSE:AET) operates as a diversified health care benefits company that provides healthcare and related benefits. The Company offers medical, pharmacy, dental, behavioral health, group life and disability plans, and medical management capabilities and health care management services for Medicaid plans.

Aetna's current stock range is defined by current calculated support defined at $41.05 and by the resistance level at $45.75, 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 Aetna, as the stock is well above support, however, as the stock pulls back towards $41.05 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 $45.75 then traders will get an opportunity to enter Aetna stock by establishing a position as the stock moves to a higher range.