Mattel Closing in to Resistance

Published on Friday, 03 February 2012 06:20 Written by Danny Miller

New York, February 3rd (TradersHuddle.com) - Shares of Mattel, Inc. (NASDAQ:MAT) are trading very close to calculated resistance at $31.69 with the current price action closing at just $31.06 placing the stock near levels that make it difficult to buy.

Mattel, Inc. (NASDAQ:MAT) designs, manufactures, and markets a broad variety of children's toys on a worldwide basis. The company offers its products under various brands, including Barbie, Little Mommy, Disney Classics, Hot Wheels, CARS, Toy Story, Fisher-Price, Sesame Street, Dora the Explorer, Power Wheels, among others.

Mattel's current stock range is defined by current calculated support defined at $27.13 and by the resistance level at $31.69, 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 Mattel, as the stock is well above support, however, as the stock pulls back towards $27.13 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 $31.69 then traders will get an opportunity to enter Mattel stock by establishing a position as the stock moves to a higher range.