Playing the Setup in DuPont

By Traders Huddle | September 24, 2012 AAA

New York, September 21st (TradersHuddle.com) - E.I. DuPont de Nemours & Co. (NYSE:DD) closed the trading day at $51.87, near its 50 day and 200 day moving averages currently set at $49.87 and $49.98 respectively. DuPont's price action placed the stock above these important levels, which could translate into a trading opportunity.E. I. Du Pont de Nemours and Company (NYSE:DD) 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 worldwide, was founded in 1802 and its headquartered in Wilmington, DE

Although, the price is above important moving averages, it's important to highlight that this is not a prime setup for buying the dip strategy, as the 50 day moving average is currently below the 200 day moving average.

The peaks and troughs algorithm shows calculated support at $48.68 and resistance at $51.40. These levels should also be evaluated by traders when planning their next move, as they provide an insight into the latest price action.

If traders want to establish a long position in DuPont, it will certainly be better to wait, given that the

stock is technically broken with the 50 day moving average trading below the 200 day moving average. Traders can also look at the current range defined by the peaks and troughs to establish a short trade versus those levels.

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