Exelon Is Close to Resistance

Published on Monday, 16 July 2012 06:28 Written by TradersHuddle Wire

New York, July 16th (TradersHuddle.com) - Shares of Exelon Corporation (NYSE:EXC) are trading very close to calculated resistance at $38.99. The stock ended the trading session at just $38.52, which is near levels that make it difficult to buy or start a position.

Exelon Corporation (NYSE:EXC) is a utility services holding company. The Company, through its subsidiaries distributes electricity to customers in Illinois and Pennsylvania. Exelon operates nuclear power plants in states that include Pennsylvania and New Jersey. The company also distributes gas to customers in the Philadelphia area.

Exelon's stock range is defined by its calculated support defined at $36.34 and by the resistance level at $38.99; 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 Exelon. However, as the stock pulls back towards $36.34 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $38.99 then traders will get an opportunity to enter the stock as it moves to a higher range.