American Axle near Key Resistance Area

Published on Tuesday, 24 January 2012 07:40 Written by Christian Paolinetti

New York, January 24th (TradersHuddle.com) - Shares of American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) are trading very close to calculated resistance at $11.80 with the current price action closing at just $11.68 placing the stock near levels that make it difficult to buy.

American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) designs, engineers, and manufactures driveline systems for light trucks and sport-utility vehicles. The Company produces axles, propeller shafts, chassis components, and forged products.

American Axle's current stock range is defined by current calculated support defined at $10.86 and by the resistance level at $11.80, 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 American Axle, as the stock is well above support, however, as the stock pulls back towards $10.86 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 $11.80 then traders will get an opportunity to enter American Axle stock by establishing a position as the stock moves to a higher range.