Flowserve Close to Resistance

Published on Sunday, 01 August 2010 20:00 Written by Christopher Lynn

New York, August 1st (TradersHuddle.com) - Shares of Flowserve Corporation (NYSE:FLS) are trading very close to calculated resistance at $100.75 with the current price action closing at just $99.16 placing the stock near levels that make it difficult to buy.

Flowserve Corporation (NYSE:FLS) manufactures, sells, and services industrial flow management equipment throughout the world. The Company provides pumps, valves, and mechanical seals primarily for the refinery and pipeline segments of the petroleum, chemical processing, power generation and water treatment industries.

Flowserve's current stock range is defined by current calculated support defined at $86.34 and by the resistance level at $100.75, 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 Flowserve, as the stock is well above support, however, as the stock pulls back towards $86.34 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 $100.75 then traders will get an opportunity to enter Flowserve stock by establishing a position as the stock moves to a higher range.