Altera near Key Resistance Area

Published on Monday, 06 February 2012 09:36 Written by TradersHuddle Staff

New York, February 6th (TradersHuddle.com) - Shares of Altera Corporation (NASDAQ:ALTR) are trading very close to calculated resistance at $41.32 with the current price action closing at just $40.85 placing the stock near levels that make it difficult to buy.

Altera Corporation (NASDAQ:ALTR) designs, manufactures, and markets programmable logic devices and associated development tools. The Company's products, include a variety of programmable logic devices and hardcopy application-specific integrated circuits. Altera serves customers primarily in the communications, computer and storage, industrial, and consumer sectors

Altera's current stock range is defined by current calculated support defined at $38.27 and by the resistance level at $41.32, 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 Altera, as the stock is well above support, however, as the stock pulls back towards $38.27 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 $41.32 then traders will get an opportunity to enter Altera stock by establishing a position as the stock moves to a higher range.