Playing Allegheny

Published on Thursday, 19 August 2010 07:24 Written by Christopher Lynn

New York, August 19th (TradersHuddle.com) - Shares of Allegheny Technologies Inc. (NYSE:ATI) closed the trading session at $46.52 near its 50 day and 200 day moving averages currently set at $48.44 and $46.56 respectively. Allegheny's price action is below these important levels, which makes the stock difficult to buy, as there will certainly be resistance as it approaches these important moving averages.

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.

Latest price action range, defined by a peaks and troughs algorithm placed calculated support at $43.34 and calculated resistance at $49.72. These levels should be watched by traders, as they provide insight into the latest price dynamics in Allegheny shares.

Traders should evaluate their options if they want to establish a position on Allegheny given the heavy resistance expected near the 50 and 200 day moving averages. A trade might be evident as the stock manages to break these moving averages, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will closely evaluate are the ones defined by the peak and troughs algorithm that provides great price level reference points.