Approaching Resistance - Ciena

Published on Friday, 10 February 2012 08:40 Written by TradersHuddle Wire

New York, February 10th (TradersHuddle.com) - Shares of Ciena Corporation (NASDAQ:CIEN) are trading very close to calculated resistance at $16.99 with the current price action closing at just $16.53 placing the stock near levels that make it difficult to buy.

Ciena Corporation (NASDAQ:CIEN) develops and markets communications network platforms. The company offers broadband access, data and optical networking platforms, software tools, and global network services support worldwide telecom and cable/MSO services providers.

Ciena's current stock range is defined by current calculated support defined at $14.45 and by the resistance level at $16.99, 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 Ciena, as the stock is well above support, however, as the stock pulls back towards $14.45 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 $16.99 then traders will get an opportunity to enter Ciena stock by establishing a position as the stock moves to a higher range.