Trading Idea: - Is CenturyLink close to Resistance?

Published on Wednesday, 20 June 2012 06:12 Written by TradersHuddle Wire

New York, June 20th (TradersHuddle.com) - Shares of CenturyLink, Inc. (NYSE:CTL) are trading very close to calculated resistance at $39.89. The stock ended the trading session at just $39.05, which is near levels that make it difficult to buy or start a position.

CenturyLink, Inc. (NYSE:CTL) is an integrated communications company. The Company provides a wide range of communications services, including local and long distance voice, Internet access and broadband services. CenturyTel operates throughout the United States.

CenturyLink's stock range is defined by its calculated support defined at $36.91 and by the resistance level at $39.89; 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 CenturyLink. However, as the stock pulls back towards $36.91 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $39.89 then traders will get an opportunity to enter the stock as it moves to a higher range.