Tyson Foods Closing in to Resistance

Published on Wednesday, 28 July 2010 06:24 Written by Danny Miller

New York, July 28th (TradersHuddle.com) - Shares of Tyson Foods, Inc. (NYSE:TSN) are trading very close to calculated resistance at $17.98 with the current price action closing at just $17.87 placing the stock near levels that make it difficult to buy.

Tyson Foods, Inc.(NYSE:TSN) produces, distributes, and markets chicken, beef, pork, prepared foods and related allied products. The Company's products are marketed and sold to national and regional grocery retailers, regional grocery wholesalers, meat distributors, warehouse club stores, military commissaries, and industrial food processing companies.

Tyson's current stock range is defined by current calculated support defined at $16.01 and by the resistance level at $17.98, 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 Tyson Foods, as the stock is well above support, however, as the stock pulls back towards $16.01 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 $17.98 then traders will get an opportunity to enter Tyson Foods stock by establishing a position as the stock moves to a higher range.