FlowTrades Blog Articles

Is Dupont Breaking Out?

Shares of EI DuPont de Nemours & Co. (NYSE:DD) closed the trading session at $34.97 just above calculated resistance at $34.765 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

E. I. Du Pont de Nemours and Company is a global chemical and life sciences company, with businesses that include agriculture and industrial biotechnology, chemistry, biology, materials science and manufacturing. The Company operates globally and offers a wide range of products and services for markets including agriculture and food, building and construction, electronics and communications. Dupont, with 60,000 employees worlwide, was founded in 1802 and its headquartered in Wilmington, DE

Dupont's stock was trading in a well defined range with support at $31.88 and resistance at $34.765, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that Dupont's stock is still near the broken resistance level, traders will be focusing on $34.765 to see if the stock holds the breakout without rolling over.

Entry Levels for Pulte

Shares of Pulte Homes, Inc. (NYSE:PHM) are trading very close to calculated support at $10.52 with current price action closing at just $10.7 places the stock price near levels where traders will start paying attention.

Pulte Homes, Inc. (NYSE:PHM) constructs and develop residential and active adult communities. The Company also provides mortgage financing, title insurance, and other services to home buyers. Pulte has operations in various markets across the United States and Puerto Rico.

Pulte's current stock range is defined by current calculated support defined at $10.52 and by the resistance level at $11.82, which should be used by traders planning their trades.

Traders wanting to establish a position should place close attention to Pulte's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $11.82 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.

The Gap's Failed Move Above Resistance

Shares of Gap, Inc. (NYSE:GPS) traded very close to calculated resistance at $20 with on Thursday closing at just $19.99 placing the stock near levels that make it difficult to buy. On Friday the stock retreated 0.70% to $19.85 after a failed breakout attempt above $20.

The Gap, Inc. (NYSE:GPS) is an international specialty retailer operating retail and outlet stores. The Company sells casual apparel, accessories and personal care products for men, women, and children, through retail stores like The Gap and Banana Republic.

Gap's current stock range is defined by current calculated support defined at $18.64 and by the resistance level at $20, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Gap, as the stock is well above support, however, as the stock pulls back towards $18.64 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $20 then traders will get an opportunity to enter Gap stock by establishing a position as the stock moves to a higher range.

American Express Close to Support

On Thursday, shares of American Express, Inc. (NYSE:AXP) traded very close to calculated support at $38.29.

American Express Company is a global payment and travel company. The Company's principal products and services are charge and credit payment card products and travel-related services offered to consumers and businesses around the world. American Express is based in New York and was founded in 1850.

American Express' current stock range is defined by current calculated support defined at $36.6 and by the resistance level at $39.17, which should be used by traders planning their trades.

Traders wanting to establish a position should place close attention to American Express' price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $39.17 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.

Chevron's Support Breached

Shares of Chevron Corp. (NYSE:CVX) closed Thursday trading session at $71.37 below calculated support at $71.75 breaking the stock technically, raising concerns by investors, as the move might trigger more selling.

Chevron Corporation is an integrated energy company with operations in countries located around the world. The Company produces and transports crude oil and natural gas. Chevron also refines, markets, and distributes fuels as well as is involved in chemical operations, mining operations, power generation and energy services. Chevron, the second largest U.S. energy producer and formerly known as ChevronTexaco, was founded in 1879 and its based in San Ramon, CA.

Chevron's stock was trading in a well defined range with support at $71.75 and resistance at $81.09; given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous support becomes resistance, as the new range gets defined, however, given that Chevron's stock is still near the broken support, traders will be focusing on $71.75 to see if the stock can bounce back and return to its previous range.

Traders wanting to establish a short position in Chevron can do so if the stock breaks the intraday low, or if the stock bounces back and selling materializes at previous support of $71.75. For traders wanting to establish a long position the current setup is to wait for the stock to get back to calculated support, given that the stock is still near from this level.

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