Fifth Third Closing in to Resistance

Published on Thursday, 09 September 2010 05:20 Written by Danny Miller

New York, September 9th (TradersHuddle.com) - Shares of Fifth Third Bancorp (NASDAQ:FITB) are trading very close to calculated resistance at $12.09 with the current price action closing at just $11.6 placing the stock near levels that make it difficult to buy.

Fifth Third Bancorp (NASDAQ:FITB) is a diversified financial services company headquartered in Cincinnati, Ohio. The company operates banking centers in in the Midwestern and Southeastern regions of the United States. Its principal businesses include retail banking, commercial banking, investment advisory, and data processing.

Fifth Third's current stock range is defined by current calculated support defined at $10.64 and by the resistance level at $12.09, 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 Fifth Third, as the stock is well above support, however, as the stock pulls back towards $10.64 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 $12.09 then traders will get an opportunity to enter Fifth Third stock by establishing a position as the stock moves to a higher range.