Navistar Close to Resistance

Published on Thursday, 22 July 2010 08:44 Written by TradersHuddle Staff

New York, July 22nd (TradersHuddle.com) - Shares of Navistar International Corporation (NYSE:NAV) are trading very close to calculated resistance at $51.90 with the current price action closing at just $51.43 placing the stock near levels that make it difficult to buy.

Navistar International Corporation (NYSE:NAV) manufactures and markets medium and heavy trucks, school buses, mid-range diesel engines, and service parts.

Navistar's current stock range is defined by current calculated support defined at $46.85 and by the resistance level at $51.90, 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 Navistar, as the stock is well above support, however, as the stock pulls back towards $46.85 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 $51.90 then traders will get an opportunity to enter Navistar stock by establishing a position as the stock moves to a higher range.