Approaching Support- US Airways

Published on Monday, 13 February 2012 06:12 Written by TradersHuddle Wire

New York, February 13th (TradersHuddle.com) - Shares of US Airways Group, Inc. (NYSE:LCC) finished near calculated support at $8.60.

Current price action with, the Phoenix based airline closed at $8.85 has left shares at a level that needs to be monitored closely by traders wanting to start or add into a position in the stock.

US Airways' current stock range is defined by current calculated support defined at $8.60 and by the resistance level at $9.91.

The area defined as calculated support, is where we expect for buyers to likely materialize, which could provide a lift to the shares. However, this area if breached will signal participants that the stock failed to entice buyers to step in an support the stock.

Traders wanting to establish a position should pay close attention to US Airways' 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 $9.91 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.