Trading Idea: - Is WellPoint close to Resistance?
Published on Friday, 14 December 2012 06:24 Written by TradersHuddle Wire
New York, December 14th (TradersHuddle.com) - Shares of WellPoint Inc. (NYSE:WLP) are trading very close to calculated resistance at $59.95. The stock ended the trading session at just $59.02, which is near levels that make it difficult to buy or start a position.
WellPoint Inc. (NYSE:WLP) is a health benefits company. The Company provides health, dental and vision benefits, pharmacy benefits, life insurance, and life and disability insurance benefits. WellPoint operations include Blue Cross and Blue Shield plans.
WellPoint's stock range is defined by its calculated support defined at $53.69 and by the resistance level at $59.95; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.
Traders don't have a clear entry point for WellPoint. However, as the stock pulls back towards $53.69 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $59.95 then traders will get an opportunity to enter the stock as it moves to a higher range.