Trading Idea - Is Wyndham Worldwide close to Resistance?

Published on Tuesday, 07 February 2012 06:08 Written by TradersHuddle Wire

New York, February 7th (TradersHuddle.com) - Shares of Wyndham Worldwide Corporation (NYSE:WYN) are trading very close to calculated resistance at $41.61 with the current price action closing at just $41.20 placing the stock near levels that make it difficult to buy.

Wyndham Worldwide Corporation (NYSE:WYN) franchises hotels in the upscale, midscale, and economy segments of the lodging industry and provides hotel management services to owners of luxury, upscale and midscale hotels; Wyndham offers its products and services under the Wyndham Hotels and Resorts, Ramada, Days Inn, Super 8, Wingate, Microtel, and RCI brands.

Wyndham's current stock range is defined by current calculated support defined at $36.26 and by the resistance level at $41.61, 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 Wyndham Worldwide, as the stock is well above support, however, as the stock pulls back towards $36.26 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 $41.61 then traders will get an opportunity to enter Wyndham Worldwide stock by establishing a position as the stock moves to a higher range.