Emerson Closing in to Resistance

Published on Tuesday, 31 January 2012 09:48 Written by TradersHuddle Staff

New York, January 31st (TradersHuddle.com) - Shares of Emerson Electric Co. (NYSE:EMR) are trading very close to calculated resistance at $52.76 with the current price action closing at just $51.72 placing the stock near levels that make it difficult to buy.

Emerson Electric Co. (NYSE:EMR) manufactures and markets electrical, electromechanical, and electronic products and systems. The Company produces a variety of products, including process control, industrial automation, electronics, appliance components, and electric motors. The company was founded in 1890 and is based in St. Louis, Missouri.

Emerson's current stock range is defined by current calculated support defined at $45.00 and by the resistance level at $52.76, 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 Emerson, as the stock is well above support, however, as the stock pulls back towards $45.00 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 $52.76 then traders will get an opportunity to enter Emerson stock by establishing a position as the stock moves to a higher range.