Trading Idea - Is Tenet Healthcare close to Support?

Published on Monday, 28 June 2010 05:56 Written by Christian Paolinetti

New York, June 28th (TradersHuddle.com) - Shares of Tenet Healthcare Corporation (NYSE:THC) are trading very close to calculated support at $4.67 with current price action closing at just $4.71 places the stock price near levels where traders will start paying attention.

Tenet Healthcare Corporation (NYSE:THC) owns or operates general hospitals and related health care facilities serving communities in the United States. The Dallas, Texas company operates rehabilitation hospitals, specialty hospitals, long-term care facilities, psychiatric facilities, and medical office buildings near its general hospitals, as well as ancillary health care businesses.

Tenet's current stock range is defined by current calculated support defined at $4.67 and by the resistance level at $5.28, which should be used by traders planning their trades.

Traders wanting to establish a position should place close attention to Tenet's 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 $5.28 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.