Avis Budget Group near Key Resistance Area

Published on Thursday, 09 September 2010 05:00 Written by Christopher Lynn

New York, September 9th (TradersHuddle.com) - Shares of Avis Budget Group, Inc. (NYSE:CAR) are trading very close to calculated resistance at $10.49 with the current price action closing at just $10.21 placing the stock near levels that make it difficult to buy.

Avis Budget Group, Inc. (NYSE:CAR) provides car and truck rentals to businesses and consumers around the world. The company supplies rental cars to the premium commercial and leisure segments of the travel industry under the Avis brand name; and to the price-conscious segments of the industry under the Budget brand name.

Avis Budget Group's current stock range is defined by current calculated support defined at $8.89 and by the resistance level at $10.49, 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 Avis Budget Group, as the stock is well above support, however, as the stock pulls back towards $8.89 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 $10.49 then traders will get an opportunity to enter Avis Budget Group stock by establishing a position as the stock moves to a higher range.