Jones Apparel Expecting Resistance Soon?

Published on Wednesday, 18 August 2010 19:28 Written by Christopher Lynn

New York, August 18th (TradersHuddle.com) - Shares of Jones Apparel Group, Inc. (NYSE:JNY) closed the trading session at $16.91 near its 50 day moving average currently set at $16.95. Jones Apparel's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 50 day.

Jones Apparel Group, Inc. (NYSE:JNY) designs, markets, and wholesales a variety of branded apparel, footwear, and accessories including sportswear, jeanswear, suits, dresses, and footwear under such brands like Nine West, Easy Spirit, Jones New York, Anne Klein, and Evan-Picone. The Company also markets directly to consumers through a chain of specialty retail and value-based stores.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $16.25 and calculated resistance at $18.62. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by Jones Apparel shares.

Traders should evaluate their trade if they want to establish a position on Jones Apparel given the resistance expected as the stock approaches the 50 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price level reference points.