Harman International Bullish Engulfing Formed

Published on Thursday, 08 July 2010 01:36 Written by TradersHuddle Staff

New York, July 8th (TradersHuddle.com) - Shares of Harman International Industries, Inc. ( (NYSE:HAR) ended the trading session higher by $1.84 or 6.25% from its previous close. Harman's price action formed what is considered to be a bullish engulfing candle that could very well signal continuation of trend or reversal on ongoing weakness.

Harman International Industries, Inc. (NYSE:HAR) designs, manufactures, and markets audio and electronic systems. The Company's Automotive segment designs, manufactures and markets audio, electronic and infotainment systems for vehicle applications and its Consumer segment designs, manufactures and markets audio and electronic systems for home, mobile and multimedia applications.

Harman's recent stock range has been formed by a trough where calculated support was defined at $28.90 and by a peak that established the resistance level at $35.96, which could be used by traders planning their trades.

Traders wanting to establish a position in Harman International or traders that are already holding the stock can use the bullish engulfing pattern to their advantage. The pattern provides a defined risk as it shows where the bears were able to push the stock down, before the bulls stepped in.

The bullish engulfing pattern is a leading indicator that provides an alert to the bulls that the trend will continue or that there is an immediate reversal to the short term weakness seen on the stock. Below an Engulfing Bullish Candle Illustration: