Trading Idea: - Is Emerson close to Resistance?

New York, August 23rd (TradersHuddle.com) - Shares of Emerson Electric Co. (NYSE:EMR) are trading very close to calculated resistance at $52.98. The stock ended the trading session at just $51.66, which is near levels that make it difficult to buy or start a position.Emerson Electric Co. (NYSE:EMR) manufactures and markets electrical, electromechanical, and electronic products and systems. The Company produces a variety of products, including process control, industrial automation, electronics, appliance components, and electric motors. The company was founded in 1890 and is based in St. Louis, Missouri.

Emerson's stock range is defined by its calculated support defined at $45.01 and by the resistance level at $52.98; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for Emerson. However, as the stock pulls back towards $45.01 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $52.98 then traders will get an opportunity to enter the stock as it moves to a higher range.