EnerSys Closing in to Resistance

Published on Sunday, 08 January 2012 14:16 Written by Christopher Lynn

New York, January 8th (TradersHuddle.com) - Shares of EnerSys (NYSE:ENS) are trading very close to calculated resistance at $27.33 with the current price action closing at just $26.69 placing the stock near levels that make it difficult to buy.

EnerSys (NYSE:ENS) is the largest industrial battery manufacturer in the world. its products and services are focused on three primary markets: Motive Power, Reserve Power, and Aerospace and Defense. The Company also manufactures, markets, and distributes related products such as chargers, power equipment, and battery accessories.

EnerSys' current stock range is defined by current calculated support defined at $23.42 and by the resistance level at $27.33, 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 EnerSys, as the stock is well above support, however, as the stock pulls back towards $23.42 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 $27.33 then traders will get an opportunity to enter EnerSys stock by establishing a position as the stock moves to a higher range.