New York, May 10th (TradersHuddle.com) - Shares of United Technologies Corp. (NYSE:UTX) closed the trading session at $77.01 below calculated support at $78.35. The stock broke down technically, raising concerns as the move might trigger additional selling.United Technologies Corporation (NYSE:UTX) provides technology products and support services to customers in the aerospace and building industries worldwide. The Company's products include aircraft engines thru its Pratt & Whitney segment, elevators and escalators thur its Otis segment, heating and air conditioning equipment thru its Carrier unit, aerospace systems, and fire and safety equipment, and Helicopters thur its Sikorsky unit. United Technologies was founded in 1934 and is based in Hartford, Connecticut.
United Technologies' stock was trading in a well defined range with support at $78.35 and resistance at $87.50; 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, $78.35 will remain in focus as United Technologies' price action places the stock near the broken support. Traders will be waiting to see if it can bounce back and return to its previous range.
Traders wanting to establish a short position in United Technologies can do so if the stock breaks the intraday low, or if the stock bounces back and selling materializes again at previous support of $78.35. However, if traders want to build a long position, the best entry point to do so is when the price action takes the stock back to calculated support.