MBIA near Resistance

Published on Wednesday, 08 September 2010 07:36 Written by Christopher Lynn

New York, September 8th (TradersHuddle.com) - Shares of MBIA Inc. (NYSE:MBI) are trading very close to calculated resistance at $10.41 with the current price action closing at just $10.02 placing the stock near levels that make it difficult to buy.

MBIA Inc. (NYSE:MBI) provides financial guarantee insurance and other forms of credit protection. The Company also offers investment management services to public finance and structured finance issuers, investors and capital market participants.

MBIA's current stock range is defined by current calculated support defined at $8.57 and by the resistance level at $10.41, 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 MBIA, as the stock is well above support, however, as the stock pulls back towards $8.57 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 $10.41 then traders will get an opportunity to enter MBIA stock by establishing a position as the stock moves to a higher range.