Sequenom near Key Resistance Area

Published on Friday, 03 September 2010 07:16 Written by Danny Miller

New York, September 3rd (TradersHuddle.com) - Shares of Sequenom Inc. (NASDAQ:SQNM) are trading very close to calculated resistance at $6.28 with the current price action closing at just $6.19 placing the stock near levels that make it difficult to buy.

Sequenom Inc. (NASDAQ:SQNM) provides genetic analysis products that translate genomic science into solutions for biomedical research, agricultural applications, molecular medicine and non-invasive prenatal diagnostics research.

Sequenom's current stock range is defined by current calculated support defined at $5.50 and by the resistance level at $6.28, 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 Sequenom, as the stock is well above support, however, as the stock pulls back towards $5.50 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 $6.28 then traders will get an opportunity to enter Sequenom stock by establishing a position as the stock moves to a higher range.