Sanofi-Aventis Is Close to Important Price Levels

Published on Thursday, 12 July 2012 07:44 Written by TradersHuddle Wire

New York, July 12th (TradersHuddle.com) - Sanofi-Aventis (NYSE:SNY) closed the trading day at $36.91, near its 50 day and 200 day moving averages currently set at $35.65 and $35.92 respectively. Sanofi-Aventis' price action placed the stock above these important levels, which could translate into a trading opportunity.

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.

Although, the price is above important moving averages, it's important to highlight that this is not a prime setup for buying the dip strategy, as the 50 day moving average is currently below the 200 day moving average.

The peaks and troughs algorithm shows calculated support at $33.03 and resistance at $38.41. These levels should also be evaluated by traders when planning their next move, as they provide an insight into the latest price action.

If traders want to establish a long position in Sanofi-Aventis , it will certainly be better to wait, given that the stock is technically broken with the 50 day moving average trading below the 200 day moving average. Traders can also look at the current range defined by the peaks and troughs to establish a short trade versus those levels.