Approaching Resistance - E*TRADE

Published on Wednesday, 08 February 2012 05:40 Written by TradersHuddle Wire

New York, February 8th (TradersHuddle.com) - Shares of E*TRADE Financial Corporation (NASDAQ:ETFC) are trading very close to calculated resistance at $9.33 with the current price action closing at just $9.10 placing the stock near levels that make it difficult to buy.

E*TRADE Financial Corporation (NASDAQ:ETFC) provides online brokerage and related products and services primarily to individual retail investors. The company offers investor-focused banking, primarily sweep deposits and savings products.

E*TRADE's current stock range is defined by current calculated support defined at $7.77 and by the resistance level at $9.33, 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 E*TRADE, as the stock is well above support, however, as the stock pulls back towards $7.77 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 $9.33 then traders will get an opportunity to enter E*TRADE stock by establishing a position as the stock moves to a higher range.