The 200 Day Moving Average is Key for HNI

Published on Thursday, 31 May 2012 05:36 Written by TradersHuddle Wire

New York, May 31st (TradersHuddle.com) - HNI Corporation (NYSE:HNI) closed the trading session at $22.89, near its 200 day moving average set at $23.88. HNI'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.

HNI Corporation (NYSE:HNI) manufactures and markets office furniture as well as hearth products for the home. The company is second largest office furniture manufacturer and the leading maker of gas- and wood-burnings fireplaces. HNI operated in the United States and Canada.

Latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $21.60 and resistance at $23.85. Traders should closely monitor these levels, as they provide great reference points for the latest price action in HNI.

If traders want to establish a position on HNI, 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.