Near Key Levels: WellPoint

Published on Friday, 29 June 2012 06:08 Written by TradersHuddle Wire

New York, June 29th (TradersHuddle.com) - WellPoint Inc. (NYSE:WLP) closed the the trading session at $65.90, near its 50 day and 200 day moving averages currently set at $68.13 and $67.47 respectively. WellPoint's price action places the stock below these important levels, which makes it difficult to be bought, as it will certainly face resistance as it approaches these important moving averages.

WellPoint Inc. (NYSE:WLP) is a health benefits company. The Company provides health, dental and vision benefits, pharmacy benefits, life insurance, and life and disability insurance benefits. WellPoint operations include Blue Cross and Blue Shield plans.

The latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $68.29 and resistance at $72.79. Traders should monitor these levels, as they provide insight into the latest price dynamics in WellPoint.

If traders want to establish a position on WellPoint, given the heavy resistance expected near the 50 and 200 day moving averages, a trade might be evident as the stock manages to break these moving averages. However, until the break materializes buying the stock is nothing different than flipping a coin.