Trading Idea - Is Scripps Networks close to Support?

Published on Friday, 27 August 2010 05:44 Written by Danny Miller

New York, August 27th (TradersHuddle.com) - Shares of Scripps Networks Interactive (NYSE:SNI) are trading very close to calculated support at $39.36 with current price action closing at just $40.05 places the stock price near levels where traders will start paying attention.

Scripps Networks Interactive (NYSE:SNI) operates television and Internet businesses. The Company owns cable networks Home and Garden Television, Food Network, DIY Network, Fine Living Network, and Great American Country. The Interactive services segment provides online comparison shopping and consumer information through Shopzilla and BizRate.

Scripps Networks' current stock range is defined by current calculated support defined at $39.36 and by the resistance level at $45.58, which should be used by traders planning their trades.

Traders wanting to establish a position should place close attention to Scripps Networks' 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 $45.58 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.