Approaching Resistance - XL Capital

Published on Saturday, 07 August 2010 18:12 Written by Danny Miller

New York, August 7th (TradersHuddle.com) - Shares of XL Capital Ltd (NYSE:XL) are trading very close to calculated resistance at $18.48 with the current price action closing at just $17.99 placing the stock near levels that make it difficult to buy.

XL Capital Ltd (NYSE:XL), through its subsidiaries, provides global insurance and reinsurance coverages to industrial, commercial and professional service firms, insurance companies and other enterprises on a worldwide basis.

XL's current stock range is defined by current calculated support defined at $16.52 and by the resistance level at $18.48, 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 XL Capital, as the stock is well above support, however, as the stock pulls back towards $16.52 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 $18.48 then traders will get an opportunity to enter XL Capital stock by establishing a position as the stock moves to a higher range.