Cummins Is Close to Resistance

Published on Monday, 11 June 2012 05:56 Written by TradersHuddle Wire

New York, June 11th (TradersHuddle.com) - Shares of Cummins Inc. (NYSE:CMI) are trading very close to calculated resistance at $100.55. The stock ended the trading session at just $96.80, which is near levels that make it difficult to buy or start a position.

Cummins Inc. (NYSE:CMI) designs, manufactures, distributes and services diesel and natural gas engines. The Company also manufactures electric power generation systems and engine-related component products, including filtration and exhaust aftertreatment, fuel systems, controls, and air handling systems. The Cummins, Inc. headquartered in Columbus, Indiana.

Cummins' stock range is defined by its calculated support defined at $89.44 and by the resistance level at $100.55; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for Cummins. However, as the stock pulls back towards $89.44 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $100.55 then traders will get an opportunity to enter the stock as it moves to a higher range.