Trading Idea: - Is E*TRADE close to Resistance?
Published on Tuesday, 30 April 2013 06:44 Written by TradersHuddle Wire
New York, April 30th (TradersHuddle.com) - Shares of E*TRADE Financial Corporation (NASDAQ:ETFC) are trading very close to calculated resistance at $10.41. The stock ended the trading session at just $10.31, which is near levels that make it difficult to buy or start a position.
E*TRADE Financial Corporation (NASDAQ:ETFC) provides online brokerage and related products and services primarily to individual retail investors. The company offers investor-focused banking, primarily sweep deposits and savings products.
E*TRADE's stock range is defined by its calculated support defined at $9.52 and by the resistance level at $10.41; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.
Traders don't have a clear entry point for E*TRADE. However, as the stock pulls back towards $9.52 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $10.41 then traders will get an opportunity to enter the stock as it moves to a higher range.