Cognizant Technology Solutions Close to Support?

Published on Friday, 10 February 2012 06:12 Written by TradersHuddle Wire

New York, February 10th (TradersHuddle.com) - Shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) are trading very close to calculated support at $69.65 with current price action closing at just $70.68 places the stock price near levels where traders will start paying attention.

Cognizant's current stock range is defined by current calculated support defined at $69.65 and by the resistance level at $74.19, which should be used by traders planning their trades. These support and resistance levels are based on an algorithm of peaks and troughs of the stock price action.

Traders wanting to establish a position should place close attention to Cognizant's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $74.19 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) provides custom Information Technology (IT) consulting and technology services as well as outsourcing services. The Company focus in technology strategy consulting, complex systems development, and enterprise software package implementation.