Trading Idea: - Is AutoNation close to Resistance?
Published on Thursday, 31 May 2012 05:52 Written by TradersHuddle Wire
New York, May 31st (TradersHuddle.com) - Shares of AutoNation, Inc. (NYSE:AN) are trading very close to calculated resistance at $36.69. The stock ended the trading session at just $35.92, which is near levels that make it difficult to buy or start a position.
AutoNation, Inc. (NYSE:AN) retails, finances, and services new and used vehicles. The Company also provides other related services and products, such as the sale of parts and accessories, extended service contracts, aftermarket automotive products, and collision repair services.
AutoNation's stock range is defined by its calculated support defined at $31.57 and by the resistance level at $36.69; 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 AutoNation. However, as the stock pulls back towards $31.57 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $36.69 then traders will get an opportunity to enter the stock as it moves to a higher range.