Ciena near Resistance

Published on Wednesday, 14 July 2010 05:32 Written by Christopher Lynn

New York, July 14th (TradersHuddle.com) - Shares of Ciena Corporation (NASDAQ:CIEN) are trading very close to calculated resistance at $13.46 with the current price action closing at just $13.32 placing the stock near levels that make it difficult to buy.

Ciena Corporation (NASDAQ:CIEN) develops and markets communications network platforms. The company offers broadband access, data and optical networking platforms, software tools, and global network services support worldwide telecom and cable/MSO services providers.

Ciena's current stock range is defined by current calculated support defined at $12.12 and by the resistance level at $13.46, 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 Ciena, as the stock is well above support, however, as the stock pulls back towards $12.12 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 $13.46 then traders will get an opportunity to enter Ciena stock by establishing a position as the stock moves to a higher range.