Coventry Health Care Expecting Resistance Soon?

Published on Tuesday, 24 August 2010 19:04 Written by TradersHuddle Staff

New York, August 24th (TradersHuddle.com) - Shares of Coventry Health Care, Inc. (NYSE:CVH) closed the trading session at $19.39 near its 50 day moving average currently set at $19.61. Coventry's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 50 day.

Coventry Health Care, Inc. (NYSE:CVH) is a managed health care company operating health plans and insurance companies under a variety of names. The Company provides health maintenance organization, preferred provider organization, point of service, Medicare and Medicaid, and Network Rental to members in markets throughout the Midwest, Mid-Atlantic, and Southeast.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $19.80 and calculated resistance at $21.08. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by Coventry Health Care shares.

Traders should evaluate their trade if they want to establish a position on Coventry Health Care given the resistance expected as the stock approaches the 50 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price level reference points.