Is Autodesk Waiting for a Break Out?

New York, October 26th (TradersHuddle.com) - Autodesk, Inc. (NASDAQ:ADSK) ended the trading session at $32.10, near its 50 day moving average set at $32.53. Autodesk's price action placed the stock below this important level, which makes it difficult to be bought, as the stock will certainly face resistance as it approaches its 50 day moving average.Autodesk, Inc. (NASDAQ:ADSK) supplies two-dimensional and three-dimensional design software products that are used across industries and in the home for architectural design, mechanical design, geographic information systems and mapping, and visualization applications. Autodesk's software products are sold worldwide through a network of dealers and distributors. AutoCAD, the company's flagship product, aids design for 2D drafting and 3D visualization.

The latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $30.20 and resistance at $32.99. These levels will be closely monitored, as they provide great insight into the latest price dynamics.

If traders want to establish a position in Autodesk, given the resistance expected as the stock approaches its 50 day moving average, a trade might materialize as the stock manages to break this important technical level. After the breakout, the 50 day moving average could be used as support going forward. However, until the break materializes, buying the stock is basically a gamble with 50-50 chance.