NRG Energy near Key Resistance Area

Published on Friday, 03 February 2012 07:24 Written by Danny Miller

New York, February 3rd (TradersHuddle.com) - Shares of NRG Energy, Inc. (NYSE:NRG) are trading very close to calculated resistance at $17.40 with the current price action closing at just $16.86 placing the stock near levels that make it difficult to buy.

NRG Energy, Inc. (NYSE:NRG) is the owner and operator of a diverse portfolio of power-generating facilities, primarily in the United States. Its operations include energy production and cogeneration facilities, thermal energy production, and energy resource recovery facilities.

NRG's current stock range is defined by current calculated support defined at $16.06 and by the resistance level at $17.40, 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 NRG Energy, as the stock is well above support, however, as the stock pulls back towards $16.06 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 $17.40 then traders will get an opportunity to enter NRG Energy stock by establishing a position as the stock moves to a higher range.