Dupont Pounced After Proxy Victory: A Technical Look

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

E I Du Pont De Nemours And Co DD shares were trading sharply lower by $4.85 (6.5 percent) at $70 in Wednesday's session. The catalyst for the decline is the company's proxy fight victory over Nelson Pelz's Trian Fund. All 12 of the company's nominees were elected to the board at the annual shareholder meeting.

See Also: DuPont Prevails In Nelson Peltz Proxy Battle, Shares Sink

The issue reacted immediately to the news in pre-market trading and slammed it down to $69.81 just before the opening bell. During the regular session, it found support just below that level, reaching $69.65. That low coincides with its April 22 low ($69.73). Since making the low, it has been struggling to remain above $70.

This is lowest DuPont has traded since mid-December when it put in a pair of lows on December 16 ($68.54) and December 17 ($68.73).