Approaching Resistance - Fortune Brands

Published on Tuesday, 31 August 2010 18:48 Written by Christian Paolinetti

New York, August 31st (TradersHuddle.com) - Shares of Fortune Brands, Inc. (NYSE:FO) are trading very close to calculated resistance at $46.46 with the current price action closing at just $44.79 placing the stock near levels that make it difficult to buy.

Fortune Brands, Inc. (NYSE:FO) is a holding company with operating companies that offers home and hardware products, produces wines and spirits, and offers golf products. The company offers various distilled spirits, including bourbon, tequila, Canadian whisky, scotch whisky, and cognacs under Jim Beam, Maker?s Mark, Sauza, Canadian Club, Laphroaig, and Courvoisier names.

Fortune Brands' current stock range is defined by current calculated support defined at $42.19 and by the resistance level at $46.46, 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 Fortune Brands, as the stock is well above support, however, as the stock pulls back towards $42.19 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 $46.46 then traders will get an opportunity to enter Fortune Brands stock by establishing a position as the stock moves to a higher range.