Autodesk Close to Resistance

Published on Tuesday, 07 February 2012 08:48 Written by TradersHuddle Wire

New York, February 7th (TradersHuddle.com) - Shares of Autodesk, Inc. (NASDAQ:ADSK) are trading very close to calculated resistance at $37.95 with the current price action closing at just $37.76 placing the stock near levels that make it difficult to buy.

Autodesk, Inc. (NASDAQ:ADSK) supplies two-dimensional and three-dimensional design software products that are used across industries and in the home for architectural design, mechanical design, geographic information systems and mapping, and visualization applications. Autodesk's software products are sold worldwide through a network of dealers and distributors. AutoCAD, the company's flagship product, aids design for 2D drafting and 3D visualization.

Autodesk's current stock range is defined by current calculated support defined at $35.41 and by the resistance level at $37.95, 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 Autodesk, as the stock is well above support, however, as the stock pulls back towards $35.41 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 $37.95 then traders will get an opportunity to enter Autodesk stock by establishing a position as the stock moves to a higher range.