Trading Idea - Is Dean Foods close to Support?

Published on Thursday, 26 August 2010 04:36 Written by Danny Miller

New York, August 26th (TradersHuddle.com) - Shares of Dean Foods Company (NYSE:DF) are trading very close to calculated support at $9.77 with current price action closing at just $10.10 places the stock price near levels where traders will start paying attention.

Dean Foods Company (NYSE:DF) is a food and beverage company that produces dairy and dairy-related products. The Company provides products such as milk and milk-based beverages, ice cream, half and half, whipping cream, sour cream, cottage cheese, yogurt, dips, and soy milk.

Dean Foods' current stock range is defined by current calculated support defined at $9.77 and by the resistance level at $11.28, which should be used by traders planning their trades.

Traders wanting to establish a position should place close attention to Dean Foods' 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 $11.28 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.