Approaching Resistance - Johnson Controls

Published on Sunday, 08 August 2010 16:36 Written by Danny Miller

New York, August 8th (TradersHuddle.com) - Shares of Johnson Controls, Inc. (NYSE:JCI) are trading very close to calculated resistance at $29.58 with the current price action closing at just $29.55 placing the stock near levels that make it difficult to buy.

Johnson Controls, Inc. (NYSE:JCI) markets automotive systems and building controls. The Company supplies seating systems, interior systems, and batteries. The company also provides building control systems and services, energy management, and integrated facility management,

Johnson Controls' current stock range is defined by current calculated support defined at $27.86 and by the resistance level at $29.58, 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 Johnson Controls, as the stock is well above support, however, as the stock pulls back towards $27.86 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 $29.58 then traders will get an opportunity to enter Johnson Controls stock by establishing a position as the stock moves to a higher range.