Allegheny near Resistance

Published on Thursday, 11 March 2010 18:08 Written by Christian Paolinetti

New York, March 11th (TradersHuddle.com) - Shares of Allegheny Technologies Inc. (NYSE:ATI) are trading very close to calculated resistance at $50.35 with the current price action closing at just $49.60 placing the stock near levels that make it difficult to buy.

Allegheny Technologies, Inc. (NYSE:ATI) manufactures and sells specialty metals worldwide. The Company's products include include titanium and titanium alloys, nickel-based alloys and superalloys, zirconium, hafnium and niobium, stainless and specialty steel alloys.

Allegheny's current stock range is defined by current calculated support defined at $41.45 and by the resistance level at $50.35, 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 Allegheny, as the stock is well above support, however, as the stock pulls back towards $41.45 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 $50.35 then traders will get an opportunity to enter Allegheny stock by establishing a position as the stock moves to a higher range.