Baxter International near Key Resistance Area

Published on Monday, 13 February 2012 08:12 Written by TradersHuddle Wire

New York, February 13th (TradersHuddle.com) - Shares of Baxter International, Inc. (NYSE:BAX) are trading very close to calculated resistance at $57.15 with the current price action closing at just $56.84 placing the stock near levels that make it difficult to buy.

Baxter International Inc. (NYSE:BAX) develops, manufactures, and markets products and technologies related to hemophilia, immune disorders, infectious diseases, kidney disease, trauma and other chronic medical conditions. The healthcare products are used by hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, doctors' offices, and research laboratories.

Baxter's current stock range is defined by current calculated support defined at $47.55 and by the resistance level at $57.15, 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 Baxter International, as the stock is well above support, however, as the stock pulls back towards $47.55 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 $57.15 then traders will get an opportunity to enter Baxter International stock by establishing a position as the stock moves to a higher range.