Approaching Resistance: Sanofi-Aventis

Published on Tuesday, 26 June 2012 09:32 Written by TradersHuddle Wire

New York, June 26th (TradersHuddle.com) - Shares of Sanofi-Aventis (NYSE:SNY) are trading very close to calculated resistance at $36.83. The stock ended the trading session at just $35.78, which is near levels that make it difficult to buy or start a position.

Sanofi-Aventis (NYSE:SNY) is a global pharmaceutical company that researches, develops and manufactures prescription pharmaceuticals and vaccines. The Company develops cardiovascular, thrombosis, metabolic disorder, central nervous system, internal medicine and oncology drugs, and vaccines.

Sanofi-Aventis' stock range is defined by its calculated support defined at $33.03 and by the resistance level at $36.83; 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 Sanofi-Aventis . However, as the stock pulls back towards $33.03 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $36.83 then traders will get an opportunity to enter the stock as it moves to a higher range.