Are the Bears Taking Control over Plum Creek Timber?

Published on Friday, 30 July 2010 03:09 Written by Christopher Lynn

New York, July 30th (TradersHuddle.com) - Shares of Plum Creek Timber Company, Inc. (NYSE:PCL) ended the trading session lower by $0.6 or -1.62% from its previous close. Plum Creek's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Plum Creek Timber Company, Inc. (NYSE:PCL) grows, harvests, and markets timber and logs, and manufactures forest products such as lumber and plywood. The Company owns timberlands located in the United States. Plum Creek also owns natural resource businesses that focus on mineral extraction and natural gas production

Plum Creek's current stock range is defined by calculated support defined at $35.96 and by the resistance level at $38.90, which should be used by traders planning their trades.

Traders wanting to establish a position in Plum Creek Timber stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current Plum Creek Timber 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: