Approaching Resistance - Crocs

Published on Wednesday, 18 August 2010 06:28 Written by TradersHuddle Staff

New York, August 18th (TradersHuddle.com) - Shares of Crocs, Inc. (NASDAQ:CROX) are trading very close to calculated resistance at $14.08 with the current price action closing at just $13.45 placing the stock near levels that make it difficult to buy.

Crocs, Inc. (NASDAQ:CROX) produces soft, lightweight, non-marking, slip- and odor-resistant shoes made of closed-cell resin material. Crocs manufactures a wide assortment of styles for men, women, boys and girls and markets them to retail chains.

Crocs' current stock range is defined by current calculated support defined at $12.51 and by the resistance level at $14.08, 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 Crocs, as the stock is well above support, however, as the stock pulls back towards $12.51 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 $14.08 then traders will get an opportunity to enter Crocs stock by establishing a position as the stock moves to a higher range.