Wyndham Worldwide Near Important Moving Averages

Published on Thursday, 02 September 2010 07:08 Written by Danny Miller

New York, September 2nd (TradersHuddle.com) - Shares of Wyndham Worldwide Corporation (NYSE:WYN) closed the trading session at $24.27 near its 50 day and 200 day moving averages currently set at $23.30 and $23.08 respectively. Wyndham's price action is above these important levels, which could translate into a trading opportunity.

Wyndham Worldwide Corporation (NYSE:WYN) franchises hotels in the upscale, midscale, and economy segments of the lodging industry and provides hotel management services to owners of luxury, upscale and midscale hotels; Wyndham offers its products and services under the Wyndham Hotels and Resorts, Ramada, Days Inn, Super 8, Wingate, Microtel, and RCI brands.

Although the price action is above important moving averages, it's important to highlight that the 50 day moving average is currently above the 200 day moving average, signaling that the stock is not technically broken from the long side and buying the dip strategy might be the best setup out there.

Looking at peaks and troughs horizontal support and resistance levels, we can see current calculated support at $22.72 and calculated resistance at $24.02. These levels should also be evaluated by traders when planning their trades, as they provide an insight into the latest price action.

If traders want to establish a position on Wyndham Worldwide need to place special attention to the stock price action and establish a position as close to the moving averages as possible. Also traders need to consider the latest price action, via the stocks current range defined by the peaks and troughs algorithm, not forgetting that if the stock had a wild move outside its range, it would certianly take a few days to establish support and resistance.