KLA-Tencor near Key Resistance Area

Published on Monday, 06 February 2012 20:12 Written by Christopher Lynn

New York, February 6th (TradersHuddle.com) - Shares of KLA-Tencor Corporation (NASDAQ:KLAC) are trading very close to calculated resistance at $53.05 with the current price action closing at just $50.83 placing the stock near levels that make it difficult to buy.

KLA-Tencor Corporation (NASDAQ:KLAC) manufactures yield management and process monitoring systems for the semiconductor industry. Its systems are used to analyze product and process quality at critical steps in the manufacture of circuits and provide feedback so that fabrication problems can be identified.

KLA-Tencor's current stock range is defined by current calculated support defined at $46.75 and by the resistance level at $53.05, 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 KLA-Tencor, as the stock is well above support, however, as the stock pulls back towards $46.75 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 $53.05 then traders will get an opportunity to enter KLA-Tencor stock by establishing a position as the stock moves to a higher range.