Trading Idea - Is JDS Uniphase close to Resistance?

Published on Wednesday, 23 June 2010 07:24 Written by Danny Miller

New York, June 23rd (TradersHuddle.com) - Shares of JDS Uniphase Corporation (NASDAQ:JDSU) are trading very close to calculated resistance at $11.92 with the current price action closing at just $11.36 placing the stock near levels that make it difficult to buy.

JDS Uniphase Corporation (NASDAQ:JDSU) provides communications test and measurement solutions and optical products for telecommunications service providers, cable operators, and network equipment manufacturers. The Company also provides optical solutions for medical/environmental instrumentation, semiconductor processing, display, brand authentication, aerospace and defense.

JDS Uniphase's current stock range is defined by current calculated support defined at $9.75 and by the resistance level at $11.92, 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 JDS Uniphase, as the stock is well above support, however, as the stock pulls back towards $9.75 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 $11.92 then traders will get an opportunity to enter JDS Uniphase stock by establishing a position as the stock moves to a higher range.