Is Bucyrus Trade Over?

Published on Tuesday, 24 August 2010 00:54 Written by Christian Paolinetti

New York, August 24th (TradersHuddle.com) - Shares of Bucyrus International, Inc. (NASDAQ:BUCY) ended the trading session lower by $2.42 or -4.02% from its previous close. Bucyrus' price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Bucyrus International, Inc. (NASDAQ:BUCY) manufactures and markets large excavation machinery used for surface mining. The Company also supplies replacement parts and machinery. Its principal products include large walking draglines, electric mining shovels and blast hole drills, which are used by customers who mine coal, iron ore, copper, and other minerals.

Bucyrus' current stock range is defined by calculated support defined at $57.22 and by the resistance level at $62.11, which should be used by traders planning their trades.

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