Close to the 50 Day - Canadian Pacific

Published on Tuesday, 31 August 2010 18:52 Written by Danny Miller

New York, August 31st (TradersHuddle.com) - Shares of Canadian Pacific Railway Limited (NYSE:CP) closed the trading day at $58.98 close to its 50 day moving average currently set at $57.56. Canadian Pacific's price action is just above this important support level translating into a trading opportunity.

Canadian Pacific Railway Limited (NYSE:CP) is a Class 1 transcontinental railway, providing freight and intermodal services over a network in Canada and the United States. Its mainline network serves major Canadian ports and cities from Montreal to Vancouver, and key centers in the United States Midwest and Northeast.

Looking at peaks and troughs horizontal support and resistance levels, we can see current calculated support at $54.73 and calculated resistance at $60.00. These levels should also be evaluated by traders when planning their trades, as they provide an insight into the latest price action.

Traders wanting to establish a position on Canadian Pacific will be looking at the price action for evidence of buying near the 50 day moving average, and opening a position as close as possible to this important level. Also traders will be looking at the latest price action, via the stocks current range previously defined for insights of other key levels that might affect their upside or downside.