Trading Idea - Is State Street close to Resistance?

Published on Wednesday, 08 September 2010 19:04 Written by Danny Miller

New York, September 8th (TradersHuddle.com) - Shares of State Street Corporation (NYSE:STT) are trading very close to calculated resistance at $37.99 with the current price action closing at just $37.3 placing the stock near levels that make it difficult to buy.

State Street Corporation (NYSE:STT), through its subsidiaries, provides various products and services for the institutional investors worldwide. The company provides securities administration and investment management services. The company serves mutual funds, collective investment funds, corporate and public retirement plans, insurance companies, foundations, endowments, and investment managers.

State Street's current stock range is defined by current calculated support defined at $34.3669 and by the resistance level at $37.99, 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 State Street, as the stock is well above support, however, as the stock pulls back towards $34.3669 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 $37.99 then traders will get an opportunity to enter State Street stock by establishing a position as the stock moves to a higher range.