Trading the Setup In WellPoint
Published on Monday, 17 December 2012 07:52 Written by TradersHuddle Wire
New York, December 17th (TradersHuddle.com) - WellPoint Inc. (NYSE:WLP) ended the trading session at $58.49, near its 50 day moving average set at $58.84. WellPoint's 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.
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.
The latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $53.69 and resistance at $59.95. These levels will be closely monitored, as they provide great insight into the latest price dynamics.
If traders want to establish a position in WellPoint, 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.
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