Bearish Moving Average Cross by BorgWarner (BWA)

Published on Fri, 01/27/2012 - 11:38
By Adrienne Chilton in Moving average crossovers, BWA, borgwarner, moving crosses, nyse:bwa

BorgWarner (NYSE:BWA) crossed under its 10-day moving average of $74.95 on a volume of 424K shares. This may provide short-term investors a chance for a short position, as such a crossover often suggests lower prices in the near term.

Over the past year, BorgWarner has traded in a range of $54.59 to $82.28 and is now at $74.19, 36% above that low. In the last five trading sessions, the 50-day moving average (MA) has climbed 0.9% while the 200-day MA has remained constant.

BorgWarner has overhead space with shares priced $74.19, or 10.0% below the average consensus analyst price target of $82.42. The stock should find initial support at its 200-day moving average (MA) of $70.40 and further support at its 50-day MA of $67.33.

BorgWarner, Inc. supplies engineered systems and components, primarily for automotive powertrain applications. The Company's products are manufactured and sold worldwide, primarily to original equipment manufacturers of passenger cars, sport utility vehicles, and light trucks. BorgWarner operates manufacturing facilities in North America, Europe, and Asia.

By Adrienne Chilton
achilton@fnno.com
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