United Technologies near Resistance

Published on Wednesday, 29 February 2012 09:00 Written by TradersHuddle Wire

New York, February 29th (TradersHuddle.com) - Shares of United Technologies Corp. (NYSE:UTX) are trading very close to calculated resistance at $85.20 with the current price action closing at just $83.47 placing the stock near levels that make it difficult to buy.

United Technologies Corporation (NYSE:UTX) provides technology products and support services to customers in the aerospace and building industries worldwide. The Company's products include aircraft engines thru its Pratt & Whitney segment, elevators and escalators thur its Otis segment, heating and air conditioning equipment thru its Carrier unit, aerospace systems, and fire and safety equipment, and Helicopters thur its Sikorsky unit. United Technologies was founded in 1934 and is based in Hartford, Connecticut.

United Technologies' current stock range is defined by current calculated support defined at $71.60 and by the resistance level at $85.20, 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 United Technologies, as the stock is well above support, however, as the stock pulls back towards $71.60 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 $85.20 then traders will get an opportunity to enter United Technologies stock by establishing a position as the stock moves to a higher range.