Trading Idea - Entry Levels for Lincoln Electric

Published on Monday, 12 December 2011 19:56 Written by Danny Miller

New York, December 12th (TradersHuddle.com) - Shares of Lincoln Electric Holdings, Inc. (NASDAQ:LECO) finished near calculated support at $37.68.

Current price action with, the maker of welding and cutting products closed at $37.90 has left shares at a level that needs to be monitored closely by traders wanting to start or add into a position in the stock.

Lincoln Electric's current stock range is defined by current calculated support defined at $37.68 and by the resistance level at $40.10.

The area defined as calculated support, is where we expect for buyers to likely materialize, which could provide a lift to the shares. However, this area if breached will signal participants that the stock failed to entice buyers to step in an support the stock.

Traders wanting to establish a position should pay close attention to Lincoln Electric's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $40.10 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.