Range Tightening in Corning

Published on Sunday, 29 August 2010 22:52 Written by Christian Paolinetti

New York, August 29th (TradersHuddle.com) - Shares of Corning, Inc. (NYSE:GLW) closed the trading session at $15.98 placing the price action in a very tight range, given that calculated support is set at $15.47 and the calculated resistance based on an algorithm of peaks and troughs is set at $16.36

Corning, Inc. (NYSE:GLW) produces optical fiber and cable, as well as, specialized products utilizing glass. It manufactures glass substrates for active matrix liquid crystal displays used in notebook computers, monitors, and LCD televisions. The company also producing optical fiber and cable, and hardware and equipment. The Life Science segment produces laboratory products, which includes microplate products, coated slides, filter plates for genomics sample preparation, plastic cell culture dishes, flasks and others.

Corning's stock price action indicates that both sellers and buyers are materializing very close to each other, which is indicative to a momentum building area, as the stock can resolve by breaking out of the tight range that developed.

Traders wanting to establish a position should place close attention to Corning's price action, as any movement outside its predefined range of $15.47 and $16.36 could grab the attention of momentum buyers, looking for a big movement in the price of the stock. Traders need to be aware that tight range resolution works both ways, hence, a move below support at $15.47 could spark above average selling. A tiered approach can be a good way to approach starting a position in Corning's, by establishing a starter position while the stock is in the tight range, and then adding to the position as it breaks and closes above resistance.