Shares of United Technologies are bumping up against extremely heavy supply near the $101 area once again. The stock first began to struggle with this zone last October and now appears headed for a fourth monthly peak here since then.

For investors, this may mean that more consolidation is ahead before a new rally leg can take hold. The result could lead to lower entry levels for patient bulls.

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Back in late October, United Technologies' powerful rebound off the September low stalled out near $101. The stock gave back little of its gains before re testing this level two weeks later as November began. With little momentum in place during this challenge, United Technologies quickly began a steady pullback that eventually drove shares to new yearly lows by mid-January. The stock managed to find its footing just below the 2015 low after declining over 16% from the November peak. With a divergent moving average convergence/divergence low in place, United Technologies began to build a solid base near $84.

In late February, as the base continued to strengthened, United Technologies exploded with a 4.6% surge on the heaviest upside trade in years. A week later, the stock returned to the $101 but was once again turned away, leaving behind an ugly spike high on Feb. 26. This month United Technologies has returned to this area and has two weekly highs in place here.

In the near term, United Technologies investors should keep a close eye on the $101 area. This major resistance zone includes the stock's 40-week moving average as well as monthly highs in October, November, February and quite possibly March. Once this level is convincingly cleared, a powerful new rally leg could be on the way. Until then, more sideways action seems likely.

A drift back down to the $97-to-$96 area would test key support near the 200-day moving average and January high. United Technologies bulls should view this zone as a low-risk buying opportunity.

Disclosure: This article is commentary by an independent contributor. At the time of publication, the author was long UTX.