Kraft near Key Resistance Area

Published on Friday, 30 July 2010 05:08 Written by TradersHuddle Staff

New York, July 30th (TradersHuddle.com) - Shares of Kraft Foods Inc. (NYSE:KFT) are trading very close to calculated resistance at $30.06 with the current price action closing at just $29.11 placing the stock near levels that make it difficult to buy.

Kraft Foods Inc. (NYSE:KFT) is a food and beverage company. The Company manufactures and markets packaged food products, including snacks, beverages, cheese, and various packaged food products. Kraft sells products like Velveeta cheese, Maxwell coffee, Oreo cookies, and Oscar Mayer hot dogs throughout the world. The company was founded in 2000 and is based in Northfield, Illinois. Kraft operates independently of Altria Group Inc. as of March 30, 2007.

Kraft's current stock range is defined by current calculated support defined at $27.59 and by the resistance level at $30.06, 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 Kraft, as the stock is well above support, however, as the stock pulls back towards $27.59 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 $30.06 then traders will get an opportunity to enter Kraft stock by establishing a position as the stock moves to a higher range.