Trading Idea: Momentum Building in Altera

New York, January 15th (TradersHuddle.com) - Shares of Altera Corporation (NASDAQ:ALTR) closed the trading session at $34.68 with its price action in a very tight range, given that calculated support is set at $34.15 and the calculated resistance is set at $36.03.

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 price action indicates that both sellers and buyers are materializing very close to each other. This signals an area where momentum is building, since the stock can resolve by breaking out of the developing tight range.

Traders wanting to establish a position should pay close attention to Altera's price action, as any movement outside its predefined range of $34.15 and $36.03 could grasp the attention of momentum buyers that look for a big movement in the price of the stock. Traders need to be aware that tight range resolution works both ways, hence, a move below support could spark above the average selling. A tiered approach could be the best way to start a position; enter into it while the stock is in the tight range, and then add to this position as it breaks and closes above resistance.



Related Partner Headlines

    JIM CRAMER wants to work for YOU. JIM does the research -- YOU get email alerts each time he trades. JIM provides access to his actual portfolio -- YOU can use it to guide your portfolio strategy. Try Jim's Action Alerts PLUS for FREE!

    TradersHuddle Search

    Stock Search:


    Site Search:

    Loading

    Recent Trading Ideas

    Latest Partner Headlines

    Stock Market

    Loading
    Chart
    o Dow Jones 17,619.51 ▲23.16 (0.13%)
    o S&P 500 2,063.11 ▲5.47 (0.27%)
    o NASDAQ 4,986.87 ▲28.40 (0.57%)
    INDEXDJX:.DJI

    Dow Jones

    Company ID [INDEXDJX:.DJI] Last trade:17,619.51 Trade time:4:42PM EDT Value change:▲23.16 (0.13%)
    INDEXSP:.INX

    S&P 500

    Company ID [INDEXSP:.INX] Last trade:2,063.11 Trade time:4:42PM EDT Value change:▲5.47 (0.27%)
    INDEXNASDAQ:.IXIC

    NASDAQ

    Company ID [INDEXNASDAQ:.IXIC] Last trade:4,986.87 Trade time:5:15PM EDT Value change:▲28.40 (0.57%)
    Copyright © 2013 TradersHuddle.com. All Rights Reserved.