How to Play the Building Momentum in Baxter International

New York, December 11th (TradersHuddle.com) - Shares of Baxter International, Inc. (NYSE:BAX) closed the trading session at $65.49 with its price action in a very tight range, given that calculated support is set at $65.20 and the calculated resistance is set at $68.91.

Baxter International Inc. (NYSE:BAX) develops, manufactures, and markets products and technologies related to hemophilia, immune disorders, infectious diseases, kidney disease, trauma and other chronic medical conditions. The healthcare products are used by hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, doctors' offices, and research laboratories.

Baxter's stock price action indicates that both sellers and buyers are materializing very close to each other. This signals an area where momentum is building, since the stock can resolve by breaking out of the developing tight range.

Traders wanting to establish a position should pay close attention to Baxter's price action, as any movement outside its predefined range of $65.20 and $68.91 could grasp the attention of momentum buyers that look for a big movement in the price of the stock. Traders need to be aware that tight range resolution works both ways, hence, a move below support could spark above the average selling. A tiered approach could be the best way to start a position; enter into it while the stock is in the tight range, and then add to this position as it breaks and closes above resistance.



Related Articles

    Related Partner Headlines

      JIM CRAMER wants to work for YOU. JIM does the research -- YOU get email alerts each time he trades. JIM provides access to his actual portfolio -- YOU can use it to guide your portfolio strategy. Try Jim's Action Alerts PLUS for FREE!

      TradersHuddle Search

      Stock Search:


      Site Search:

      Loading

      Recent Trading Ideas

      Latest Partner Headlines

      Stock Market

      Loading
      Chart
      o Dow Jones 18,267.58 ▼18.16 (-0.10%)
      o S&P 500 2,129.87 ▼0.95 (-0.04%)
      o NASDAQ 5,096.88 ▲6.09 (0.12%)
      INDEXDJX:.DJI

      Dow Jones

      Company ID [INDEXDJX:.DJI] Last trade:18,267.58 Trade time:3:06PM EDT Value change:▼18.16 (-0.10%)
      INDEXSP:.INX

      S&P 500

      Company ID [INDEXSP:.INX] Last trade:2,129.87 Trade time:3:06PM EDT Value change:▼0.95 (-0.04%)
      INDEXNASDAQ:.IXIC

      NASDAQ

      Company ID [INDEXNASDAQ:.IXIC] Last trade:5,096.88 Trade time:3:06PM EDT Value change:▲6.09 (0.12%)
      Copyright © 2013 TradersHuddle.com. All Rights Reserved.