Trading Idea - Is Accenture close to Resistance?

Published on Monday, 13 February 2012 08:56 Written by TradersHuddle Wire

New York, February 13th (TradersHuddle.com) - Shares of Accenture PLC (NYSE:ACN) are trading very close to calculated resistance at $57.41 with the current price action closing at just $56.96 placing the stock near levels that make it difficult to buy.

Accenture PLC (NYSE:ACN) provides management and technology consulting services and solutions. The Company delivers a range of specialized capabilities and solutions to clients across all industries on a worldwide basis.

Accenture's current stock range is defined by current calculated support defined at $51.08 and by the resistance level at $57.41, 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 Accenture, as the stock is well above support, however, as the stock pulls back towards $51.08 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 $57.41 then traders will get an opportunity to enter Accenture stock by establishing a position as the stock moves to a higher range.