Trading Idea - Is Millicom close to Resistance?

Published on Wednesday, 28 July 2010 05:00 Written by Christopher Lynn

New York, July 28th (TradersHuddle.com) - Shares of Millicom International Cellular S.A. (NASDAQ:MICC) are trading very close to calculated resistance at $92.97 with the current price action closing at just $90.40 placing the stock near levels that make it difficult to buy.

Millicom International Cellular S.A. (NASDAQ:MICC) develops and operates cellular telephone systems worldwide. The Company has interests in cellular systems primarily in emerging markets in Asia, Latin America, Europe, and Africa.

Millicom's current stock range is defined by current calculated support defined at $84.08 and by the resistance level at $92.97, 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 Millicom, as the stock is well above support, however, as the stock pulls back towards $84.08 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 $92.97 then traders will get an opportunity to enter Millicom stock by establishing a position as the stock moves to a higher range.