Trading Southwestern Energy

Published on Thursday, 09 February 2012 08:20 Written by TradersHuddle Wire

New York, February 9th (TradersHuddle.com) - Shares of Southwestern Energy Company (NYSE:SWN) closed the trading session at $32.93 near its 50 day moving average currently set at $33.07. Southwestern's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 50 day.

Southwestern Energy Company (NYSE:SWN) is an independent energy company primarily focused on natural gas and crude oil exploration within the United States. The Company operations also include natural gas gathering, transmission, and marketing, as well as natural gas distribution.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $30.06 and calculated resistance at $32.70. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by Southwestern Energy shares.

Traders should evaluate their trade if they want to establish a position on Southwestern Energy given the resistance expected as the stock approaches the 50 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price level reference points.