Intrepid Potash Is Near a Key Resistance Area

Published on Friday, 08 June 2012 08:12 Written by TradersHuddle Wire

New York, June 8th (TradersHuddle.com) - Shares of Intrepid Potash, Inc. (NYSE:IPI) are trading very close to calculated resistance at $20.33. The stock ended the trading session at just $20.12, which is near levels that make it difficult to buy or start a position.

Intrepid Potash, Inc. (NYSE:IPI) mines and markets potash for use as a fertilizer. It also offers by-products, including salt, magnesium chloride, and metal recovery salts. Intrepid serves agricultural, industrial, and feed markets. The company is based in Denver, Colorado.

Intrepid Potash's stock range is defined by its calculated support defined at $18.42 and by the resistance level at $20.33; 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 Intrepid Potash. However, as the stock pulls back towards $18.42 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $20.33 then traders will get an opportunity to enter the stock as it moves to a higher range.