Is Jabil Circuit Resistance Ahead?

Published on Monday, 14 May 2012 07:52 Written by TradersHuddle Wire

New York, May 14th (TradersHuddle.com) - Jabil Circuit, Inc. (NYSE:JBL) closed the trading session at $20.04, near its 200 day moving average set at $20.91. Jabil's stock action is below this level, which makes the stock difficult to be bought, as it will face resistance as it approaches its 200 day moving average.

Jabil Circuit, Inc. (NYSE:JBL) is an electronic manufacturing services provider for international electronics companies in the communications, personal computer, peripheral, consumer, and automotive markets.

Latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $21.71 and resistance at $23.78. Traders should closely monitor these levels, as they provide great reference points for the latest price action in Jabil Circuit.

If traders want to establish a position on Jabil Circuit, given that resistance could materialize as the stock approaches its 200 day moving average, a trade might materialize as the stock manages to break this important level. After the breakout, the 200 day moving average could be used as support going forward. However, until the break materializes, traders need to exercise patience.