PetSmart Reversal Soon?

Published on Monday, 05 July 2010 20:18 Written by TradersHuddle Staff

New York, July 5th (TradersHuddle.com) - Shares of PetSmart, Inc. (NASDAQ:PETM) ended the trading session lower by $0.32 or -1.05% from its previous close. PetSmart's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

PetSmart, Inc. (NASDAQ:PETM) is a specialty retailer of products and services for pets. The Company operates pet superstores in the United States and Canada and provides pet food and supplies, and offers full-service veterinary, grooming and pet training services.

PetSmart's current stock range is defined by calculated support defined at $29.5451 and by the resistance level at $33.35, which should be used by traders planning their trades.

Traders wanting to establish a position in PetSmart stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current PetSmart shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: