Trading Idea: Entry Levels for Boston Beer

Published on Friday, 13 July 2012 06:56 Written by TradersHuddle Wire

New York, July 13th (TradersHuddle.com) - Shares of Boston Beer Company, Inc. (NYSE:SAM) are trading very close to calculated support at $112.80 with price action closing at just $114.11 and placing the stock near levels where traders will start paying attention.

Boston Beer's stock range is defined by its calculated support defined at $112.80 and by the resistance level at $128.07, which should be used by traders planning their trades. These support and resistance levels are based on a peaks and troughs algorithm of the stock's price action.

Traders wanting to establish a position should pay close attention to Boston Beer's price action, and establish it as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $128.07 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the 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.