Trading Idea: - Is E*TRADE close to Resistance?

Published on Friday, 01 February 2013 11:40 Written by TradersHuddle Wire

New York, February 1st (TradersHuddle.com) - Shares of E*TRADE Financial Corporation (NASDAQ:ETFC) are trading very close to calculated resistance at $10.70. The stock ended the trading session at just $10.60, which is near levels that make it difficult to buy or start a position.

E*TRADE Financial Corporation (NASDAQ:ETFC) provides online brokerage and related products and services primarily to individual retail investors. The company offers investor-focused banking, primarily sweep deposits and savings products.

E*TRADE's stock range is defined by its calculated support defined at $9.87 and by the resistance level at $10.70; 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 E*TRADE. However, as the stock pulls back towards $9.87 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $10.70 then traders will get an opportunity to enter the stock as it moves to a higher range.