Dover Closing in to Resistance

Published on Wednesday, 18 January 2012 18:36 Written by Danny Miller

New York, January 18th (TradersHuddle.com) - Shares of Dover Corporation (NYSE:DOV) are trading very close to calculated resistance at $61.28 with the current price action closing at just $60.60 placing the stock near levels that make it difficult to buy.

Dover Corporation (NYSE:DOV) manufactures a variety of specialized industrial products and manufacturing equipment. Its products include Material handling equipment, tank trailers, refrigeration systems, refrigeration display cases, marking and coding systems, drill bit inserts, and electronic technology equipment.

Dover's current stock range is defined by current calculated support defined at $56.81 and by the resistance level at $61.28, 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 Dover, as the stock is well above support, however, as the stock pulls back towards $56.81 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 $61.28 then traders will get an opportunity to enter Dover stock by establishing a position as the stock moves to a higher range.