Approaching Support- Viacom

Published on Wednesday, 28 July 2010 01:16 Written by Christopher Lynn

New York, July 28th (TradersHuddle.com) - Shares of Viacom Inc. (NYSE:VIA.B) are trading very close to calculated support at $31.39 with current price action closing at just $32.87 places the stock price near levels where traders will start paying attention.

Viacom Inc. (NYSE:VIA.B) operates as an entertainment content company It operates in two segments, Media Networks and Filmed Entertainment. The Media Networks segment provides entertainment content to advertisers, content distributors, and retailers across various distribution platforms, the company serves through networks like MTV, Nickelodeon, and Comedy Central. The Filmed Entertainment segment produces, finances, and distributes motion pictures under the Paramount Pictures, MTV, and Nickelodeon movie brands.

Viacom's current stock range is defined by current calculated support defined at $31.39 and by the resistance level at $34.48, which should be used by traders planning their trades.

Traders wanting to establish a position should place close attention to Viacom's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $34.48 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.