State Street Close to Important Technical Levels

Published on Wednesday, 08 February 2012 08:52 Written by TradersHuddle Wire

New York, February 8th (TradersHuddle.com) - Shares of State Street Corporation (NYSE:STT) closed the trading session at $41.64 near its 50 day and 200 day moving averages currently set at $40.54 and $39.97 respectively. State Street's price action is above these important levels, which could translate into a trading opportunity.

State Street Corporation (NYSE:STT), through its subsidiaries, provides various products and services for the institutional investors worldwide. The company provides securities administration and investment management services. The company serves mutual funds, collective investment funds, corporate and public retirement plans, insurance companies, foundations, endowments, and investment managers.

Although the price action is above important moving averages, it's important to highlight that the 50 day moving average is currently above the 200 day moving average, signaling that the stock is not technically broken from the long side and buying the dip strategy might be the best setup out there.

Looking at peaks and troughs horizontal support and resistance levels, we can see current calculated support at $38.21 and calculated resistance at $42.81. These levels should also be evaluated by traders when planning their trades, as they provide an insight into the latest price action.

If traders want to establish a position on State Street need to place special attention to the stock price action and establish a position as close to the moving averages as possible. Also traders need to consider the latest price action, via the stocks current range defined by the peaks and troughs algorithm, not forgetting that if the stock had a wild move outside its range, it would certianly take a few days to establish support and resistance.