Wednesday, August 1, 2012

EnerSys (NYSE: ENS)

EnerSys manufactures, markets, and distributes industrial batteries in the Americas, Europe, and Asia. It offers reserve power products that are used for backup power for the continuous operation of critical applications in telecommunications systems, uninterruptible power systems applications for computer and computer-controlled systems, and in other specialty power applications, including security systems; starting, lighting, and ignition applications; switchgear and electrical control systems used in electric utilities and energy pipelines; and commercial aircraft, satellites, military aircraft, submarines, ships, tactical vehicles, and portable energy packs. In addition, it offers industrial battery related products, such as chargers, power equipment, and battery accessories, as well as provides related after-market and customer-support services. EnerSys markets and sells its reserve power batteries principally under the ABSL, ABSL Power, ABSL Space, ArmaSafePlus, Cyclon, DataSafe, Genesis, Hawker, Huada, Odyssey, Oerlikon Battery, PowerSafe, and SuperSafe brand names; and motive power batteries primarily under the Douglas Battery, Express, Fiamm Motive Power, General Battery, Hawker, Huada, and Ironclad brand names through a network of distributors, independent representatives, and its internal sales force.

To review EnerSys' stock, please take a look at the 1-year chart of ENS (EnerSys) below with my added notations:

ENS has created a couple of important price levels to watch. First, ENS has formed a clear resistance at $36 (navy), which would also be a 52-week high breakout if ENS could manage to break above it. In addition, the stock is climbing a short term, up-trending support level (red) over the last (3) months. These two levels combined have ENS stuck within a common chart pattern known as an Ascending Triangle. Eventually, ENS will have to break one of those two levels.

The Tale of the Tape: ENS has an up trending support and a 52-week resistance level to watch. A long trade could be made on a breakout above the $36 resistance. A break below the up trending support would be an opportunity to enter a short trade.

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