Johnson Controls Setting for a Break?

Published on Thursday, 02 September 2010 18:44 Written by Danny Miller

New York, September 2nd (TradersHuddle.com) - Shares of Johnson Controls, Inc. (NYSE:JCI) closed the trading session at $28.30 near its 50 day and 200 day moving averages currently set at $28.30 and $29.45 respectively. Johnson Controls' 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.

Johnson Controls, Inc. (NYSE:JCI) markets automotive systems and building controls. The Company supplies seating systems, interior systems, and batteries. The company also provides building control systems and services, energy management, and integrated facility management,

Latest price action range, defined by a peaks and troughs algorithm placed calculated support at $26.34 and calculated resistance at $29.28. These levels should be watched by traders, as they provide insight into the latest price dynamics in Johnson Controls shares.

Traders should evaluate their options if they want to establish a position on Johnson Controls 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.