Is Cummins Breaking Out?

Published on Wednesday, 10 March 2010 08:28 Written by Danny Miller

New York, March 10th (TradersHuddle.com) - Shares of Cummins Inc. (NYSE:CMI) closed the trading session at $61.13 just above calculated resistance at $60.99 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

Cummins Inc. designs, manufactures, distributes and services diesel and natural gas engines. The Company also manufactures electric power generation systems and engine-related component products, including filtration and exhaust aftertreatment, fuel systems, controls, and air handling systems. The Cummins, Inc. headquartered in Columbus, Indiana.

Cummins' stock was trading in a well defined range with support at $53.86 and resistance at $60.99, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that Cummins' stock is still near the broken resistance level, traders will be focusing on $60.99 to see if the stock holds the breakout without rolling over.