Are the Bears Taking Control over Spectra Energy?

Published on Friday, 27 August 2010 00:24 Written by Christopher Lynn

New York, August 27th (TradersHuddle.com) - Shares of Spectra Energy Corporation (NYSE:SE) ended the trading session lower by $0.21 or -1% from its previous close. Spectra's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Spectra Energy Corporation (NYSE:SE) transmits, stores, distributes, gathers, and processes natural gas. The Company provides transportation and storage of natural gas to customers in various regions of the northeastern and southeastern United States, the Maritime Provinces in Canada and the Pacific Northwest in the United States and Canada, and the province of Ontario, Canada.

Spectra's current stock range is defined by calculated support defined at $20.65 and by the resistance level at $22.11, which should be used by traders planning their trades.

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