Are the Bears Taking Control over Great Atlantic & Pacific Tea?

Published on Wednesday, 08 September 2010 01:57 Written by Christian Paolinetti

New York, September 8th (TradersHuddle.com) - Shares of The Great Atlantic & Pacific Tea Company, Inc. (NYSE:GAP) ended the trading session lower by $0.12 or -3.52% from its previous close. Great Atlantic & Pacific Tea's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

The Great Atlantic & Pacific Tea Company, Inc. (NYSE:GAP) operates retail food chains in the United States and Canada. Its stores operate under the trade names A&P, Super Fresh, Sav-A-Center, Farmer Jack, Food Emporium, Waldbaum's, Super Food Mart, Dominion, and Food Basics. Great Atlantic sells groceries, meats, fresh produce, and other consumer goods products.

Great Atlantic & Pacific Tea's current stock range is defined by calculated support defined at $2.69 and by the resistance level at $3.55, which should be used by traders planning their trades.

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