Ferro Closing in to Resistance

Published on Wednesday, 01 February 2012 18:20 Written by Danny Miller

New York, February 1st (TradersHuddle.com) - Shares of Ferro Corporation (NYSE:FOE) are trading very close to calculated resistance at $7.11 with the current price action closing at just $7.01 placing the stock near levels that make it difficult to buy.

Ferro Corporation (NYSE:FOE) produces performance materials for industry. The Company produces a variety of coatings, colors, ceramics, chemicals, plastics, and related products. Its primary markets are building and renovation, major appliances, household furnishings, transportation, industrial products, packaging, and leisure products.

Ferro's current stock range is defined by current calculated support defined at $6.22 and by the resistance level at $7.11, 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 Ferro, as the stock is well above support, however, as the stock pulls back towards $6.22 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 $7.11 then traders will get an opportunity to enter Ferro stock by establishing a position as the stock moves to a higher range.