Is Altera Closing in to Resistance?

Published on Wednesday, 09 January 2013 07:40 Written by TradersHuddle Wire

New York, January 9th (TradersHuddle.com) - Shares of Altera Corporation (NASDAQ:ALTR) are trading very close to calculated resistance at $36.03. The stock ended the trading session at just $34.51, which is near levels that make it difficult to buy or start a position.

Altera Corporation (NASDAQ:ALTR) designs, manufactures, and markets programmable logic devices and associated development tools. The Company's products, include a variety of programmable logic devices and hardcopy application-specific integrated circuits. Altera serves customers primarily in the communications, computer and storage, industrial, and consumer sectors

Altera's stock range is defined by its calculated support defined at $30.89 and by the resistance level at $36.03; 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 Altera. However, as the stock pulls back towards $30.89 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $36.03 then traders will get an opportunity to enter the stock as it moves to a higher range.