Trading Idea - Is Teva close to Resistance?

Published on Monday, 23 August 2010 07:12 Written by TradersHuddle Staff

New York, August 23rd (TradersHuddle.com) - Shares of Teva Pharmaceutical Industries Ltd. (NASDAQ:TEVA) are trading very close to calculated resistance at $50.78 with the current price action closing at just $50.28 placing the stock near levels that make it difficult to buy.

Teva Pharmaceutical Industries Ltd. (NASDAQ:TEVA) develops, manufactures and markets generic and branded human pharmaceuticals and active pharmaceutical ingredients. The Company produces antibiotics, oncological products, Alpha D3 for treatment of post-menopausal bone loss in women and Copaxone for treatment of multiple sclerosis.

Teva's current stock range is defined by current calculated support defined at $46.99 and by the resistance level at $50.78, 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 Teva, as the stock is well above support, however, as the stock pulls back towards $46.99 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 $50.78 then traders will get an opportunity to enter Teva stock by establishing a position as the stock moves to a higher range.