Company Description: BorgWarner Inc. engages in the manufacture and sale of engineered automotive systems and components primarily for power train applications worldwide. It operates in two segments, Engine and Drivetrain. The Engine segment offers turbochargers, chain products, emissions systems, thermal systems, diesel cold start and gasoline ignition technology, and diesel cabin heaters. It also manufactures electric air pumps, turbo actuators, and exhaust gas recirculation valves for gasoline and diesel applications; fluid pumps, including engine oil pumps for engine and transmission lubrication; and products for engine air intake management. This segment’s chain and chain systems include timing chain and timing drive systems, variable cam timing systems, crankshaft and camshaft sprockets, tensioners, guides, snubbers, front-wheel drive transmission chain and four-wheel drive chain, and chain systems for light-vehicle and commercial-vehicle applications. The Drivetrain segment offers friction products comprising friction plates, transmission bands, torque converter clutches, and friction clutch modules; mechanical products, such as one-way clutches and torsional vibration dampers; control products, including electro-hydraulic solenoids, solenoid modules, and high pressure solenoids for automated manual transmissions; and dual clutch transmission products comprising dual clutch modules, torsional vibration dampers, and mechatronic control modules. The company sells its products primarily to original equipment manufacturers (OEMs) of light vehicles, such as passenger cars, sport-utility vehicles, vans, and light trucks; OEMs of commercial trucks, buses, and agricultural and off-highway vehicles; and various Tier One vehicle systems suppliers, and the aftermarket for light and commercial vehicles. BorgWarner Inc. was founded in 1987 and is headquartered in Auburn Hills, Michigan.

Our Analysis: The shares of BorgWarner, Inc. 'BWA' closed below a pair of downside support levels on jheavier than normal trading volume yesterday. This is a negative trading signal. The shares of 'BWA' should continue to move lower and test $30.10/share, a point of downside support established on July 8th of this year. If the shares of 'BWA' close below that level as I expect they will, then they should continue to move lower and test $26.96/share, a downside support level established on May 13th of this year. I see upside resistance on teh shares of 'BWA' @ $31.60/share, and have set my stops accordingly at $32.09/share.