Owens Corning Strong Resistance Ahead

Published on Friday, 27 August 2010 05:20 Written by Christopher Lynn

New York, August 27th (TradersHuddle.com) - Shares of Owens Corning Inc. (NYSE:OC) closed the trading session at $27.45 near its 200 day moving average currently set at $27.89. Owens Corning'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 200 day moving average.

Owens Corning Inc. (NYSE:OC) is a material company that opertes in the buidling and cnstruction industries. It offers insulation, roofing, siding, basement and acoustic systems for building and remodeling. The company also produces composites solutions and asphalt.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $26.73 and calculated resistance at $28.65. These levels are being closely watched by traders, as they provide great reference points for the latest price dynamics in Owens Corning shares.

Traders should evaluate their trade if they want to establish a position on Owens Corning given the resistance expected as the stock approaches the 200 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, traders need to exercise patience. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price action reference points.