Trading Idea: Key levels for GlaxoSmithKline

Published on Thursday, 06 September 2012 07:48 Written by TradersHuddle Wire

New York, September 6th (TradersHuddle.com) - Shares of GlaxoSmithKline plc (NYSE:GSK) are trading very close to calculated support at $43.77 with price action closing at just $45.30 and placing the stock near levels where traders will start paying attention.

GlaxoSmithKline's stock range is defined by its calculated support defined at $43.77 and by the resistance level at $47.40, which should be used by traders planning their trades. These support and resistance levels are based on a peaks and troughs algorithm of the stock's price action.

Traders wanting to establish a position should pay close attention to GlaxoSmithKline's price action, and establish it as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $47.40 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the 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.