Are the Bears Taking Control over Tyson Foods?

Published on Friday, 03 September 2010 07:42 Written by Christian Paolinetti

New York, September 3rd (TradersHuddle.com) - Shares of Tyson Foods, Inc. (NYSE:TSN) ended the trading session lower by $0.55 or -3.32% from its previous close. Tyson's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Tyson Foods, Inc.(NYSE:TSN) produces, distributes, and markets chicken, beef, pork, prepared foods and related allied products. The Company's products are marketed and sold to national and regional grocery retailers, regional grocery wholesalers, meat distributors, warehouse club stores, military commissaries, and industrial food processing companies.

Tyson's current stock range is defined by calculated support defined at $15.88 and by the resistance level at $16.78, which should be used by traders planning their trades.

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