Molson Coors Brewing Is Close to Resistance

Published on Monday, 16 July 2012 07:20 Written by TradersHuddle Wire

New York, July 16th (TradersHuddle.com) - Shares of Molson Coors Brewing Company (NYSE:TAP) are trading very close to calculated resistance at $41.84. The stock ended the trading session at just $40.86, which is near levels that make it difficult to buy or start a position.

Molson Coors Brewing Company (NYSE:TAP) brews beer through breweries in Canada, the United States and the United Kingdom. The company brews Coors Light, Canadian, Molson Dry, Miller Lite, and Miller Genuine Draft, among others. Molson Coors also distributes Amstel Light, Heineken, Corona, Pacifico, and Asahi.

Molson Coors' stock range is defined by its calculated support defined at $37.96 and by the resistance level at $41.84; 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 Molson Coors Brewing. However, as the stock pulls back towards $37.96 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $41.84 then traders will get an opportunity to enter the stock as it moves to a higher range.