Trading Idea: - Is BB&T close to Resistance?

Published on Thursday, 24 January 2013 06:04 Written by TradersHuddle Wire

New York, January 24th (TradersHuddle.com) - Shares of BB&T Corporation (NYSE:BBT) are trading very close to calculated resistance at $31.22. The stock ended the trading session at just $30.76, which is near levels that make it difficult to buy or start a position.

BB&T Corporation (NYSE:BBT) operates banking locations in North and South Carolina, Georgia, Virginia, Maryland, West Virginia, Kentucky, Alabama, Indiana, Washington D.C., Florida and Tennessee. The Company offers full-service commercial and retail banking, as well as insurance, retail brokerage, corporate finance, and international banking.

BB&T's stock range is defined by its calculated support defined at $26.86 and by the resistance level at $31.22; 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 BB&T. However, as the stock pulls back towards $26.86 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $31.22 then traders will get an opportunity to enter the stock as it moves to a higher range.