GlaxoSmithKline Close to Important Technical Levels

Published on Friday, 10 February 2012 06:36 Written by TradersHuddle Wire

New York, February 10th (TradersHuddle.com) - Shares of GlaxoSmithKline plc (NYSE:GSK) closed the trading session at $45.06 near its 50 day and 200 day moving averages currently set at $44.92 and $43.29 respectively. GlaxoSmithKline's price action is above these important levels, which could translate into a trading opportunity.

GlaxoSmithKline plc (NYSE:GSK) is a research-based pharmaceutical group that develops, manufactures and markets vaccines, prescription and over-the-counter medicines, as well as health-related consumer products. Its over the counter medicines and health related consumer products are marketed under brand names like Panadol, Nicorette, Breathe Right, Tums, Aquafresh, and Sensodyne among others.

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 $43.72 and calculated resistance at $44.65. 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 GlaxoSmithKline 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.