DuPont Is Between the 50 and 200 Day Moving Averages

Published on Friday, 15 June 2012 07:00 Written by TradersHuddle Wire

New York, June 15th (TradersHuddle.com) - E.I. DuPont de Nemours & Co. (NYSE:DD) closed the trading day at $49.55, near its 50 day and 200 day moving averages set at $50.91 and $48.50 respectively. DuPont's price action placed the stock above the 200 day moving average but below its 50 day moving average, a setup that signals a possible break out.

E. I. Du Pont de Nemours and Company (NYSE:DD) is a global chemical and life sciences company, with businesses that include agriculture and industrial biotechnology, chemistry, biology, materials science and manufacturing. The Company operates globally and offers a wide range of products and services for markets including agriculture and food, building and construction, electronics and communications. DuPont, with 60,000 employees worldwide, was founded in 1802 and its headquartered in Wilmington, DE

DuPont seems to be setting up for a tight range between the 200 day moving average as support and the 50 day moving average serving as resistance.

A tiered approach, appears to be the best strategy to maximize possible movements in the stock, as traders could establish a small position in DuPont and wait for the stock to break out above its 50 day moving average at $50.91. Then they could add to the position as momentum builds with the breakout. On the flip side, if support being referenced at the 200 day moving average set at $48.50 breaks, it could signal further downside pressure for DuPont.