Trading Idea - Is Dupont close to Resistance?

Published on Friday, 30 July 2010 04:56 Written by Christian Paolinetti

New York, July 30th (TradersHuddle.com) - Shares of EI DuPont de Nemours & Co. (NYSE:DD) are trading very close to calculated resistance at $41.14 with the current price action closing at just $40.51 placing the stock near levels that make it difficult to buy.

E. I. Du Pont de Nemours and Company 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 worlwide, was founded in 1802 and its headquartered in Wilmington, DE

Dupont's current stock range is defined by current calculated support defined at $35.61 and by the resistance level at $41.14, 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 Dupont, as the stock is well above support, however, as the stock pulls back towards $35.61 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 $41.14 then traders will get an opportunity to enter Dupont stock by establishing a position as the stock moves to a higher range.