Ciena near Resistance

Published on Tuesday, 31 August 2010 05:52 Written by TradersHuddle Staff

New York, August 31st (TradersHuddle.com) - Shares of Ciena Corporation (NASDAQ:CIEN) are trading very close to calculated resistance at $12.82 with the current price action closing at just $12.79 placing the stock near levels that make it difficult to buy.

Ciena Corporation (NASDAQ:CIEN) develops and markets communications network platforms. The company offers broadband access, data and optical networking platforms, software tools, and global network services support worldwide telecom and cable/MSO services providers.

Ciena's current stock range is defined by current calculated support defined at $11.88 and by the resistance level at $12.82, 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 Ciena, as the stock is well above support, however, as the stock pulls back towards $11.88 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 $12.82 then traders will get an opportunity to enter Ciena stock by establishing a position as the stock moves to a higher range.