Saturday, June 27, 2015

Joy Global Inc. (NYSE: JOY)

Joy Global Inc. manufactures and services mining equipment for the extraction of coal, copper, iron ore, oil sands, gold, and other minerals. The Underground Mining Machinery segment produces armored face conveyors, battery haulers, continuous chain haulage systems, continuous miners, conveyor systems, feeder breakers, flexible conveyor trains, hard rock mining products, high angle conveyors, long wall shearers, powered roof supports, road headers, roof bolters, and shuttle cars. The Surface Mining Equipment segment produces blasthole drills, conveyor systems, electric mining shovels, feeder breakers, high angle conveyors, walking draglines, and wheel loaders. The company sells its products and services directly to mining companies through a network of sales and marketing personnel worldwide. Joy Global Inc. was founded in 1884 and is headquartered in Milwaukee, Wisconsin.
Take a look at the 1-year chart of Joy (NYSE: JOY) with the added notations:
1-year chart of Joy (NYSE: JOY)
JOY was in a solid downtrend from August of last year until March of this year. After the stock finally bottomed, JOY ended up finding repeated support at $38.00 (green) over the following 4 months. Now that the stock is at that support level again, traders should be able to expect some sort of bounce, most likely back up to the $41 resistance (red). However, if the $38.00 support were to break, lower prices should follow.

The Tale of the Tape: JOY has an important level of support at $38.00. A trader could enter a long position at $38.00 with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.
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