Discovery Communications Near the 50 Day

Published on Wednesday, 08 September 2010 08:04 Written by Christian Paolinetti

New York, September 8th (TradersHuddle.com) - Shares of Discovery Communications, Inc. (NASDAQ:DISCA) closed the trading day at $39.18 close to its 50 day moving average currently set at $37.30. Discovery's price action is just above this important support level translating into a trading opportunity.

Discovery Communications, Inc. (NASDAQ:DISCA) operates as a media and entertainment company worldwide. The Company operates a wide range of educational television channels as well as offers consumer and educational products and services, and a diversified portfolio of digital media services. The company operates cable and satellite television networks in the United States, including Discovery Channel, TLC, Animal Planet, Discovery Health, Discovery Kids, Science Channel, Planet Green, Investigation Discovery, Military Channel, FitTV, and HD Theater.

Looking at peaks and troughs horizontal support and resistance levels, we can see current calculated support at $36.19 and calculated resistance at $40.52. These levels should also be evaluated by traders when planning their trades, as they provide an insight into the latest price action.

Traders wanting to establish a position on Discovery Communications will be looking at the price action for evidence of buying near the 50 day moving average, and opening a position as close as possible to this important level. Also traders will be looking at the latest price action, via the stocks current range previously defined for insights of other key levels that might affect their upside or downside.