ITT near Resistance

Published on Sunday, 22 January 2012 19:28 Written by Danny Miller

New York, January 22nd (TradersHuddle.com) - Shares of ITT Corporation (NYSE:ITT) are trading very close to calculated resistance at $22.34 with the current price action closing at just $21.67 placing the stock near levels that make it difficult to buy.

ITT Corporation (NYSE:ITT) designs and manufactures a variety of engineered products. The Company produces pumps, systems, and services to measure and control water and other fluids. ITT also supplies military defense systems, including night vision devices, secure communication systems, and avionics, in addition to providing electrical interconnects, and data storage and PC cards.

ITT's current stock range is defined by current calculated support defined at $18.77 and by the resistance level at $22.34, 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 ITT, as the stock is well above support, however, as the stock pulls back towards $18.77 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 $22.34 then traders will get an opportunity to enter ITT stock by establishing a position as the stock moves to a higher range.