Approaching Resistance - National-Oilwell Varco

Published on Tuesday, 13 July 2010 04:40 Written by Christopher Lynn

New York, July 13th (TradersHuddle.com) - Shares of National-Oilwell Varco Inc. (NYSE:NOV) are trading very close to calculated resistance at $35.96 with the current price action closing at just $35.57 placing the stock near levels that make it difficult to buy.

National-Oilwell Varco Inc. (NYSE:NOV) designs, manufactures, and sells machinery, equipment, and downhole products used in oil and gas drilling and production. The Company also provides oilfield inspection and other services, and supply chain integration services to the upstream oil and gas industry.

National-Oilwell Varco's current stock range is defined by current calculated support defined at $32.18 and by the resistance level at $35.96, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for National-Oilwell Varco, as the stock is well above support, however, as the stock pulls back towards $32.18 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $35.96 then traders will get an opportunity to enter National-Oilwell Varco stock by establishing a position as the stock moves to a higher range.