GlaxoSmithKline Is Close to Resistance

Published on Monday, 20 August 2012 09:08 Written by TradersHuddle Wire

New York, August 20th (TradersHuddle.com) - Shares of GlaxoSmithKline plc (NYSE:GSK) are trading very close to calculated resistance at $47.40. The stock ended the trading session at just $46.33, which is near levels that make it difficult to buy or start a position.

GlaxoSmithKline plc (NYSE:GSK) is a research-based pharmaceutical group that develops, manufactures and markets vaccines, prescription and over-the-counter medicines, as well as health-related consumer products. Its over the counter medicines and health related consumer products are marketed under brand names like Panadol, Nicorette, Breathe Right, Tums, Aquafresh, and Sensodyne among others.

GlaxoSmithKline's stock range is defined by its calculated support defined at $43.77 and by the resistance level at $47.40; 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 GlaxoSmithKline. However, as the stock pulls back towards $43.77 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $47.40 then traders will get an opportunity to enter the stock as it moves to a higher range.