Jarden Dipping Below Support

Published on Thursday, 24 November 2011 17:52 Written by TradersHuddle Staff

New York, November 24th (TradersHuddle.com) - Shares of Jarden Corporation (NYSE:JAH) closed the trading session at $28.92 below calculated support at $29.48 breaking current long setups, raising concerns by the bulls, as this move might give the bears the upper hand.

Jarden Corporation (NYSE:JAH) provides a broad range of consumer products. Its product segments include Outdoor Solutions, Consumer Solutions and Branded Consumables. Jarden sells products through a variety of brands, like First Alert, Coleman, Oster, Sunbeam, Food Saver, and Marmot using several distribution channels, including club, department store, drug, grocery, mass merchant, sporting goods and specialty retailers, as well as direct to consumers.

Jarden's stock was trading in a well defined range with support at $29.48 and resistance at $34.95; 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 Jarden's stock is still near the broken support, traders will be focusing on $29.48 to see if the stock can bounce back and return to its previous range.

Traders wanting to establish a short position in Jarden can do so if the stock breaks the intraday low, or if the stock bounces back and selling materializes again at previous support of $29.48. 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.