Is MetroPCS Expecting Resistance Soon?
Published on Tuesday, 20 November 2012 07:52 Written by TradersHuddle Wire
New York, November 20th (TradersHuddle.com) - MetroPCS Communications, Inc. (NYSE:PCS) ended the trading session at $11.00, near its 50 day moving average set at $11.03. MetroPCS' 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.
MetroPCS Communications, Inc. (NYSE:PCS) is a wireless communications provider in the United States. The Company offers unlimited wireless voice and data services to the mass market under prepaid plans
The latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $9.80 and resistance at $10.37. These levels will be closely monitored, as they provide great insight into the latest price dynamics.
If traders want to establish a position in MetroPCS, 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.