Is Weyerhaeuser Closing in to Resistance?

Published on Monday, 09 April 2012 08:56 Written by TradersHuddle Wire

New York, April 9th (TradersHuddle.com) - Shares of Weyerhaeuser Company (NYSE:WY) are trading very close to calculated resistance at $22.36. The stock ended the trading session at just $21.51, which is near levels that make it difficult to buy or start a position.

Weyerhaeuser Company (NYSE:WY) is an integrated forest products company. The Company primarily grows and harvests trees, develops and construct real estate and makes a range of forest products.

Weyerhaeuser's stock range is defined by its calculated support defined at $19.82 and by the resistance level at $22.36; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for Weyerhaeuser. However, as the stock pulls back towards $19.82 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $22.36 then traders will get an opportunity to enter the stock as it moves to a higher range.