AmerisourceBergen Reversal Soon?

Published on Tuesday, 10 August 2010 01:21 Written by Danny Miller

New York, August 10th (TradersHuddle.com) - Shares of AmerisourceBergen Corporation (NYSE:ABC) ended the trading session lower by $0.1 or -0.33% from its previous close. AmerisourceBergen's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

AmerisourceBergen Corporation (NYSE:ABC) is a pharmaceutical services company. The Company distributes pharmaceutical products and services. AmerisourceBergen distributes an offering of brand name and generic pharmaceuticals, over-the-counter healthcare products, and home healthcare supplies and equipment. AmerisourceBergen also provides pharmacy management, staffing and other consulting services.

AmerisourceBergen's current stock range is defined by calculated support defined at $27.82 and by the resistance level at $30.79, which should be used by traders planning their trades.

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