Key Levels for Cognizant Technology Solutions

Published on Monday, 16 July 2012 08:04 Written by TradersHuddle Wire

New York, July 16th (TradersHuddle.com) - Cognizant Technology Solutions Corporation (NASDAQ:CTSH) ended the trading session at $57.26, near its 50 day moving average set at $59.49. Cognizant's price action placed the stock below this important level, which makes it difficult to be bought, as the stock will certainly face resistance as it approaches its 50 day moving average.

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) provides custom Information Technology (IT) consulting and technology services as well as outsourcing services. The Company focus in technology strategy consulting, complex systems development, and enterprise software package implementation.

The latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $53.92 and resistance at $60.55. These levels will be closely monitored, as they provide great insight into the latest price dynamics.

If traders want to establish a position in Cognizant Technology Solutions, given the resistance expected as the stock approaches its 50 day moving average, a trade might materialize as the stock manages to break this important technical level. After the breakout, the 50 day moving average could be used as support going forward. However, until the break materializes, buying the stock is basically a gamble with 50-50 chance.