Is Monster Worldwide Expecting Resistance Soon?

Published on Tuesday, 25 December 2012 05:52 Written by TradersHuddle Wire

New York, December 25th (TradersHuddle.com) - Monster Worldwide, Inc. (NYSE:MWW) ended the trading session at $5.86, near its 50 day moving average set at $6.14. Monster'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.

Monster Worldwide, Inc. (NYSE:MWW) through its subsidiaries, offers help wanted advertisements over the Internet. The Company charges employers and human resource professionals to post and search advertisements, and allows job seekers to search job postings and post their resumes free of charge.

The latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $5.68 and resistance at $6.25. These levels will be closely monitored, as they provide great insight into the latest price dynamics.

If traders want to establish a position in Monster Worldwide, 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.