New York, March 21st (TradersHuddle.com) - Shares of Avon Products Inc. (NYSE:AVP) closed the session at $18.86 with its price action in a very tight range, given that calculated support is set at $18.09 and the calculated resistance is set at $19.05
Avon Products, Inc. (NYSE:AVP) manufactures and direct sells beauty and related products. The Company markets its products to consumers worldwide through independent sales representatives.
Avon's stock price action indicates that both sellers and buyers are materializing very close to each other, which is indicative to a momentum building area, as the stock can resolve by breaking out of the tight range that is developing.
Traders wanting to establish a position should place close attention to Avon's price action, as any movement outside its predefined range of $18.09 and $19.05 could grab the attention of momentum buyers, looking for a big movement in the price of the stock. Traders need to be aware that tight range resolution works both ways, hence, a move below support could spark above average selling. A tiered approach can be a good way to approach to start a position, by establishing a starter position while the stock is in the tight range, and then adding to the position as it breaks and closes above resistance.