Trading Idea: - Is Cognizant Technology Solutions close to Resistance?

Published on Tuesday, 17 July 2012 07:16 Written by TradersHuddle Wire

New York, July 17th (TradersHuddle.com) - Shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) are trading very close to calculated resistance at $60.55. The stock ended the trading session at just $58.26, which is near levels that make it difficult to buy or start a position.

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.

Cognizant's stock range is defined by its calculated support defined at $53.92 and by the resistance level at $60.55; 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 Cognizant Technology Solutions. However, as the stock pulls back towards $53.92 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $60.55 then traders will get an opportunity to enter the stock as it moves to a higher range.