Trading Idea - Is Hartford Financial close to Resistance?

Published on Monday, 30 August 2010 04:40 Written by TradersHuddle Staff

New York, August 30th (TradersHuddle.com) - Shares of Hartford Financial Services Group, Inc. (NYSE:HIG) are trading very close to calculated resistance at $21.29 with the current price action closing at just $20.32 placing the stock near levels that make it difficult to buy.

The Hartford Financial Services Group, Inc. (NYSE:HIG) provides property and casualty insurance, annuities, life insurance, investment services, and group insurance. The Conneticutt based insurer operates around the world.

Hartford Financial's current stock range is defined by current calculated support defined at $18.86 and by the resistance level at $21.29, 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 Hartford Financial, as the stock is well above support, however, as the stock pulls back towards $18.86 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 $21.29 then traders will get an opportunity to enter Hartford Financial stock by establishing a position as the stock moves to a higher range.