Is this a Reversal Pattern for Tupperware Brands ?

Published on Monday, 23 August 2010 07:42 Written by Christian Paolinetti

New York, August 23rd (TradersHuddle.com) - Shares of Tupperware Brands Corporation (NYSE:TUP) ended the trading session lower by $0.1 or -0.24% from its previous close. Tupperware's price action in today's session formed what is considered to be a Hammer, where bears drove prices lower intraday. However, the strong finish indicates that bulls regained control forming a trend reversal.

Tupperware Brands Corporation (NYSE:TUP) is a multinational direct selling company, which sell products across multiple brands and categories through an independent sales force. Its product brands and categories include food preparation, storage, and serving solutions for the kitchen and home. Tupperware Brands Corp also sells beauty and personal care products.

Tupperware's stock has been trading in a well defined range with support at $39.72 and resistance at $42.21, this range is also being used by traders to plan their positions.

Traders wanting to establish a position in Tupperware Brands or traders that are already holding the stock can use the hammer formation to their advantage, since the pattern signal a potential bullish trend reversal.

Hammers are important candlesticks as they mark bottoms and support levels. Further buying pressure, and preferably on expanding volume, is needed before acting, as heavy volume will serve to confirm the validity of the reversal.

In the case of Tupperware Brands, traders who want to add to their positions or start a new position, need to watch for confirmation of the reversal. Below a Hammer illustration: