Trading Idea - Is NetApp close to Resistance?

Published on Thursday, 22 July 2010 05:08 Written by TradersHuddle Staff

New York, July 22nd (TradersHuddle.com) - Shares of NetApp, Inc. (NASDAQ:NTAP) are trading very close to calculated resistance at $41.41 with the current price action closing at just $39.83 placing the stock near levels that make it difficult to buy.

NetApp, Inc. (NASDAQ:NTAP) provides storage and data management solutions. The storage solutions include specialized hardware, software, and services that provide storage management for open network environments.

NetApp's current stock range is defined by current calculated support defined at $36.66 and by the resistance level at $41.41, 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 NetApp, as the stock is well above support, however, as the stock pulls back towards $36.66 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 $41.41 then traders will get an opportunity to enter NetApp stock by establishing a position as the stock moves to a higher range.