Boston Beer Is Near a Key Resistance Area

Published on Wednesday, 27 June 2012 09:00 Written by TradersHuddle Wire

New York, June 27th (TradersHuddle.com) - Shares of Boston Beer Company, Inc. (NYSE:SAM) are trading very close to calculated resistance at $120.00. The stock ended the trading session at just $117.37, which is near levels that make it difficult to buy or start a position.

The Boston Beer Company, Inc. (NYSE:SAM) produces a variety of craft-brewed beers at various contract breweries and Company-owned breweries. The Company sells its products under brand names such as Boston Beer Company, Oregon Beer and Samuel Adams.

Boston Beer's stock range is defined by its calculated support defined at $101.79 and by the resistance level at $120.00; 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 Boston Beer. However, as the stock pulls back towards $101.79 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $120.00 then traders will get an opportunity to enter the stock as it moves to a higher range.