Cummins Close to 50 Day Moving Average

Published on Monday, 30 August 2010 05:44 Written by TradersHuddle Staff

New York, August 30th (TradersHuddle.com) - Shares of Cummins Inc. (NYSE:CMI) closed the trading day at $76.19 close to its 50 day moving average currently set at $74.87. Cummins' price action is just above this important support level translating into a trading opportunity.

Cummins Inc. designs, manufactures, distributes and services diesel and natural gas engines. The Company also manufactures electric power generation systems and engine-related component products, including filtration and exhaust aftertreatment, fuel systems, controls, and air handling systems. The Cummins, Inc. headquartered in Columbus, Indiana.

Looking at peaks and troughs horizontal support and resistance levels, we can see current calculated support at $71.51 and calculated resistance at $82.69. These levels should also be evaluated by traders when planning their trades, as they provide an insight into the latest price action.

Traders wanting to establish a position on Cummins will be looking at the price action for evidence of buying near the 50 day moving average, and opening a position as close as possible to this important level. Also traders will be looking at the latest price action, via the stocks current range previously defined for insights of other key levels that might affect their upside or downside.