Trading Idea - Is Apollo close to Resistance?

Published on Tuesday, 20 July 2010 18:36 Written by Danny Miller

New York, July 20th (TradersHuddle.com) - Shares of Apollo Group, Inc. (NASDAQ:APOL) are trading very close to calculated resistance at $49.98 with the current price action closing at just $48.08 placing the stock near levels that make it difficult to buy.

Apollo Group, Inc. (NASDAQ:APOL) provides higher education programs mainly for working adults. The Company provides educational programs and services at the high school, undergraduate, and graduate levels online and on-campus through subsidiaries.

Apollo's current stock range is defined by current calculated support defined at $41.45 and by the resistance level at $49.98, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Apollo, as the stock is well above support, however, as the stock pulls back towards $41.45 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $49.98 then traders will get an opportunity to enter Apollo stock by establishing a position as the stock moves to a higher range.