Candlesticks - Bearish Engulfing IBM

Published on Thursday, 02 September 2010 18:27 Written by TradersHuddle Staff

New York, September 2nd (TradersHuddle.com) - Shares of International Business Machines Corp. (NYSE:IBM) ended the trading session lower by $0.73 or -0.58% from its previous close. IBM's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

International Business Machines Corporation (NYSE:IBM) provides computer solutions through the use of advanced information technology. The Company's solutions include technologies, systems, products, services, software, and financing. IBM offers its products globally through different distribution channels. Its Global Technology Services segment offers IT infrastructure and business process services. The company's Global Business Services segment provides professional services and application outsourcing services, including consulting and systems integration, and application management. IBM was founded in 1910 and is based in Armonk, NY.

IBM's current stock range is defined by calculated support defined at $122.28 and by the resistance level at $129.50, which should be used by traders planning their trades.

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