Trading Idea - Is PetSmart close to Support?

Published on Monday, 09 August 2010 18:48 Written by Christopher Lynn

New York, August 9th (TradersHuddle.com) - Shares of PetSmart, Inc. (NASDAQ:PETM) are trading very close to calculated support at $30.19 with current price action closing at just $31.67 places the stock price near levels where traders will start paying attention.

PetSmart, Inc. (NASDAQ:PETM) is a specialty retailer of products and services for pets. The Company operates pet superstores in the United States and Canada and provides pet food and supplies, and offers full-service veterinary, grooming and pet training services.

PetSmart's current stock range is defined by current calculated support defined at $30.19 and by the resistance level at $32.70, which should be used by traders planning their trades.

Traders wanting to establish a position should place close attention to PetSmart's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $32.70 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.