Trading Idea - Is Allegheny close to Support?

Published on Friday, 06 August 2010 07:28 Written by Christian Paolinetti

New York, August 6th (TradersHuddle.com) - Shares of Allegheny Technologies Inc. (NYSE:ATI) are trading very close to calculated support at $46.13 with current price action closing at just $47.65 places the stock price near levels where traders will start paying attention.

Allegheny Technologies, Inc. (NYSE:ATI) manufactures and sells specialty metals worldwide. The Company's products include include titanium and titanium alloys, nickel-based alloys and superalloys, zirconium, hafnium and niobium, stainless and specialty steel alloys.

Allegheny's current stock range is defined by current calculated support defined at $46.13 and by the resistance level at $53.41, which should be used by traders planning their trades.

Traders wanting to establish a position should place close attention to Allegheny's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $53.41 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.