Southwestern Energy near Key Resistance Area

Published on Wednesday, 01 September 2010 05:44 Written by Danny Miller

New York, September 1st (TradersHuddle.com) - Shares of Southwestern Energy Company (NYSE:SWN) are trading very close to calculated resistance at $33.92 with the current price action closing at just $32.72 placing the stock near levels that make it difficult to buy.

Southwestern Energy Company (NYSE:SWN) is an independent energy company primarily focused on natural gas and crude oil exploration within the United States. The Company operations also include natural gas gathering, transmission, and marketing, as well as natural gas distribution.

Southwestern's current stock range is defined by current calculated support defined at $31.89 and by the resistance level at $33.92, 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 Southwestern Energy, as the stock is well above support, however, as the stock pulls back towards $31.89 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 $33.92 then traders will get an opportunity to enter Southwestern Energy stock by establishing a position as the stock moves to a higher range.