Macy's near Resistance

Published on Thursday, 09 February 2012 08:44 Written by TradersHuddle Wire

New York, February 9th (TradersHuddle.com) - Shares of Macy's, Inc. (NYSE:M) are trading very close to calculated resistance at $36.37 with the current price action closing at just $35.86 placing the stock near levels that make it difficult to buy.

Macy's, Inc. (NYSE:M) operates department stores in the United States. The New York, NY based company also operates direct mail catalog and electronic commerce subsidiaries. Macy's retail stores sell a wide range of merchandise, including men's, women's and children's apparel and accessories, cosmetics, home furnishings and other consumer goods.

Macy's, Inc. current stock range is defined by current calculated support defined at $32.84 and by the resistance level at $36.37, 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 Macy's, as the stock is well above support, however, as the stock pulls back towards $32.84 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 $36.37 then traders will get an opportunity to enter Macy's stock by establishing a position as the stock moves to a higher range.