Bucyrus Closing in to Resistance

Published on Thursday, 29 July 2010 18:44 Written by Christian Paolinetti

New York, July 29th (TradersHuddle.com) - Shares of Bucyrus International, Inc. (NASDAQ:BUCY) are trading very close to calculated resistance at $63.00 with the current price action closing at just $60.80 placing the stock near levels that make it difficult to buy.

Bucyrus International, Inc. (NASDAQ:BUCY) manufactures and markets large excavation machinery used for surface mining. The Company also supplies replacement parts and machinery. Its principal products include large walking draglines, electric mining shovels and blast hole drills, which are used by customers who mine coal, iron ore, copper, and other minerals.

Bucyrus' current stock range is defined by current calculated support defined at $50.83 and by the resistance level at $63.00, 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 Bucyrus, as the stock is well above support, however, as the stock pulls back towards $50.83 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 $63.00 then traders will get an opportunity to enter Bucyrus stock by establishing a position as the stock moves to a higher range.