Approaching Support: WellPoint

Published on Tuesday, 05 March 2013 09:12 Written by TradersHuddle Wire

New York, March 5th (TradersHuddle.com) - Shares of WellPoint Inc. (NYSE:WLP) are trading very close to calculated support at $60.41 with price action closing at just $61.82 and placing the stock near levels where traders will start paying attention.

WellPoint's stock range is defined by its calculated support defined at $60.41 and by the resistance level at $66.41, 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 WellPoint'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 $66.41 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the position.

WellPoint Inc. (NYSE:WLP) is a health benefits company. The Company provides health, dental and vision benefits, pharmacy benefits, life insurance, and life and disability insurance benefits. WellPoint operations include Blue Cross and Blue Shield plans.