Motorola near Resistance

Published on Wednesday, 08 September 2010 05:52 Written by Christian Paolinetti

New York, September 8th (TradersHuddle.com) - Shares of Motorola, Inc. (NYSE:MOT) are trading very close to calculated resistance at $8.01 with the current price action closing at just $7.83 placing the stock near levels that make it difficult to buy.

Motorola, Inc. (NYSE:MOT) provides technologies, products, and services for mobile communications worldwide. It operates in three segments: Mobile Devices, Home and Networks Mobility, and Enterprise Mobility Solutions. The Company offers wireless handsets, wireless accessories, digital entertainment devices, wireless access systems, voice and data communications systems, and enterprise mobility products.

Motorola's current stock range is defined by current calculated support defined at $7.29 and by the resistance level at $8.01, 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 Motorola, as the stock is well above support, however, as the stock pulls back towards $7.29 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 $8.01 then traders will get an opportunity to enter Motorola stock by establishing a position as the stock moves to a higher range.