Trading Idea - Is SCANA close to Resistance?

Published on Friday, 03 February 2012 05:36 Written by Christopher Lynn

New York, February 3rd (TradersHuddle.com) - Shares of SCANA Corporation (NYSE:SCG) are trading very close to calculated resistance at $45.58 with the current price action closing at just $45.00 placing the stock near levels that make it difficult to buy.

SCANA Corporation (NYSE:SCG) is a holding company involved in regulated electric and natural gas utility operations, telecommunications, and other energy-related businesses. The Company serves electric customers in South Carolina and natural gas customers in South Carolina, North Carolina, and Georgia.

SCANA's current stock range is defined by current calculated support defined at $40.51 and by the resistance level at $45.58, 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 SCANA, as the stock is well above support, however, as the stock pulls back towards $40.51 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 $45.58 then traders will get an opportunity to enter SCANA stock by establishing a position as the stock moves to a higher range.