Trading Idea: Is Baxter International close to Support?

Published on Friday, 08 February 2013 06:16 Written by TradersHuddle Wire

New York, February 8th (TradersHuddle.com) - Shares of Baxter International, Inc. (NYSE:BAX) are trading very close to calculated support at $65.20 with price action closing at just $68.53 and placing the stock near levels where traders will start paying attention.

Baxter's stock range is defined by its calculated support defined at $65.20 and by the resistance level at $69.34, which should be used by traders planning their trades. These support and resistance levels are based on a peaks and troughs algorithm of the stock's price action.

Traders wanting to establish a position should pay close attention to Baxter's price action, and establish it as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $69.34 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the position.

Baxter International Inc. (NYSE:BAX) develops, manufactures, and markets products and technologies related to hemophilia, immune disorders, infectious diseases, kidney disease, trauma and other chronic medical conditions. The healthcare products are used by hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, doctors' offices, and research laboratories.