Boston Beer near Resistance

Published on Wednesday, 08 February 2012 08:20 Written by TradersHuddle Wire

New York, February 8th (TradersHuddle.com) - Shares of Boston Beer Company, Inc. (NYSE:SAM) are trading very close to calculated resistance at $108.16 with the current price action closing at just $103.16 placing the stock near levels that make it difficult to buy.

The Boston Beer Company, Inc. (NYSE:SAM) produces a variety of craft-brewed beers at various contract breweries and Company-owned breweries. The Company sells its products under brand names such as Boston Beer Company, Oregon Beer and Samuel Adams.

Boston Beer's current stock range is defined by current calculated support defined at $98.62 and by the resistance level at $108.16, 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 Boston Beer, as the stock is well above support, however, as the stock pulls back towards $98.62 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 $108.16 then traders will get an opportunity to enter Boston Beer stock by establishing a position as the stock moves to a higher range.