Trading Idea: Entry Levels for CNA Financial

Published on Wednesday, 30 May 2012 05:20 Written by TradersHuddle Wire

New York, May 30th (TradersHuddle.com) - Shares of CNA Financial Corporation (NYSE:CNA) are trading very close to calculated support at $28.02 with price action closing at just $28.85 and placing the stock near levels where traders will start paying attention.

CNA's stock range is defined by its calculated support defined at $28.02 and by the resistance level at $31.50, which should be used by traders planning their trades. These support and resistance levels are based on a peaks and troughs algorithm of the stock's price action.

Traders wanting to establish a position should pay close attention to CNA's price action, and establish it as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $31.50 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the position.

CNA Financial Corporation (NYSE:CNA) operates as an insurance holding company and, through its subsidiaries, provides commercial property and casualty coverages. Its services include risk management, information services, warranty and claims administration.