Trading Idea - Is Torchmark close to Resistance?

Published on Tuesday, 03 August 2010 19:20 Written by Christian Paolinetti

New York, August 3rd (TradersHuddle.com) - Shares of Torchmark Corporation (NYSE:TMK) are trading very close to calculated resistance at $54.98 with the current price action closing at just $53.42 placing the stock near levels that make it difficult to buy.

Torchmark Corporation (NYSE:TMK) is an insurance and financial services holding company. The company offers life and health insurance, and annuities. Life products include traditional and interest sensitive whole life insurance as well as term life insurance. Health products include Medicare supplement, accident, and limited hospital and surgical coverages.

Torchmark's current stock range is defined by current calculated support defined at $48.22 and by the resistance level at $54.98, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Torchmark, as the stock is well above support, however, as the stock pulls back towards $48.22 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $54.98 then traders will get an opportunity to enter Torchmark stock by establishing a position as the stock moves to a higher range.