Sanofi-Aventis Close to Resistance

Published on Wednesday, 08 February 2012 08:00 Written by TradersHuddle Wire

New York, February 8th (TradersHuddle.com) - Shares of Sanofi-Aventis (NYSE:SNY) are trading very close to calculated resistance at $37.58 with the current price action closing at just $37.54 placing the stock near levels that make it difficult to buy.

Sanofi-Aventis (NYSE:SNY) is a global pharmaceutical company that researches, develops and manufactures prescription pharmaceuticals and vaccines. The Company develops cardiovascular, thrombosis, metabolic disorder, central nervous system, internal medicine and oncology drugs, and vaccines.

Sanofi-Aventis' current stock range is defined by current calculated support defined at $35.09 and by the resistance level at $37.58, 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 Sanofi-Aventis , as the stock is well above support, however, as the stock pulls back towards $35.09 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 $37.58 then traders will get an opportunity to enter Sanofi-Aventis stock by establishing a position as the stock moves to a higher range.