Below Support- AerCap

Published on Wednesday, 23 November 2011 17:24 Written by Christopher Lynn

New York, November 23rd (TradersHuddle.com) - Shares of AerCap Holdings NV (NYSE:AER) closed the trading session at $9.73 below calculated support at $9.92 breaking current long setups, raising concerns by the bulls, as this move might give the bears the upper hand.

AerCap Holdings NV (NYSE:AER) is an integrated global aviation company. The Company is engaged in aircraft and engine leasing, trading and parts sales. The Company also provides aircraft management services and performs aircraft and engine MRO services and aircraft disassemblies through its certified repair stations.

AerCap's stock was trading in a well defined range with support at $9.92 and resistance at $12.32; 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 support becomes resistance, as the new range gets defined, however, given that AerCap's stock is still near the broken support, traders will be focusing on $9.92 to see if the stock can bounce back and return to its previous range.

Traders wanting to establish a short position in AerCap can do so if the stock breaks the intraday low, or if the stock bounces back and selling materializes again at previous support of $9.92. For traders wanting to establish a long position, wait for price action to take the stock back to calculated support, which will provide a best entry point to build the position.