Trading Idea - Entry Levels for GlaxoSmithKline

Published on Tuesday, 07 February 2012 09:16 Written by TradersHuddle Wire

New York, February 7th (TradersHuddle.com) - Shares of GlaxoSmithKline plc (NYSE:GSK) finished near calculated support at $43.72.

Current price action with, the U.K. based pharmaceutical and health related consumer products maker closed at $45.09 has left shares at a level that needs to be monitored closely by traders wanting to start or add into a position in the stock.

GlaxoSmithKline's current stock range is defined by current calculated support defined at $43.72 and by the resistance level at $44.65.

The area defined as calculated support, is where we expect for buyers to likely materialize, which could provide a lift to the shares. However, this area if breached will signal participants that the stock failed to entice buyers to step in an support the stock.

Traders wanting to establish a position should pay close attention to GlaxoSmithKline's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $44.65 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.