Resistance Above for Trinity Industries?

Published on Wednesday, 08 September 2010 08:28 Written by Christian Paolinetti

New York, September 8th (TradersHuddle.com) - Shares of Trinity Industries, Inc. (NYSE:TRN) closed the trading session at $18.76 near its 50 day and 200 day moving averages currently set at $18.60 and $19.45 respectively. Trinity's price action is above the 50 day moving average but below its 200 day moving average, which provide a nice trading setup, with clear reference points.

Trinity Industries, Inc. (NYSE:TRN) manufactures transportation, construction, and industrial products. Its products include tank and freight railcars, inland hopper and tank barges, highway guardrail and safety products, ready-mix concrete, and other products. Trinity also leases railcars and other products. The Company markets its products around the world.

Trinity Industries price action seems to be setting up for a tight range between the 50 day moving average as support and the 200 day moving average serving as resistance.

A tiered approach to enter the stock, appears to be the best way to maximize possible movements from the stock, as traders could enter Trinity Industries with a small position and wait for the stock to break out above the 200 day moving average at $19.45, where traders could add to their position as momentum builds with the breakout. The flip side will be if support being referenced at the 50 day moving average set at $18.60 breaks it could mean further downside in the horizon for Trinity Industries.