American Tower Is Approaching its 50 Day Moving Average

Published on Thursday, 30 August 2012 06:04 Written by TradersHuddle Wire

New York, August 30th (TradersHuddle.com) - American Tower Corporation (NYSE:AMT) ended the trading session at $69.75, near its 50 day moving average set at $70.54. American Tower'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.

American Tower Corporation (NYSE:AMT) owns, operates, and develops wireless communications and broadcast towers in the United States. The Company leases antennae sites on multi-tenant towers for a diverse range of wireless communications industries. American Tower also offers a variety of network development services.

The latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $69.84 and resistance at $75.62. These levels will be closely monitored, as they provide great insight into the latest price dynamics.

If traders want to establish a position in American Tower, 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.