Key Level for RadioShack

Published on Friday, 03 September 2010 07:28 Written by Danny Miller

New York, September 3rd (TradersHuddle.com) - Shares of RadioShack Corporation (NYSE:RSH) closed the trading session at $19.17 near its 50 day moving average currently set at $20.07. RadioShack's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 50 day.

RadioShack Corporation (NYSE:RSH) operates a chain of retail consumer electronics goods and services stores located throughout the United States. The Company markets electronic parts and accessories, cellular, PCS and conventional telephones, computers, scanners, software, and related products.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $17.87 and calculated resistance at $18.82. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by RadioShack shares.

Traders should evaluate their trade if they want to establish a position on RadioShack given the resistance expected as the stock approaches the 50 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price level reference points.