Travelers Had a Bearish Engulfing Candle

Published on Wednesday, 23 March 2011 04:42 Written by Christopher Lynn

New York, March 23rd (TradersHuddle.com) - Shares of Travelers Companies, Inc. (NYSE:TRV) ended the trading session lower by $0.67 or -1.14% from its previous close. Travelers' price action formed what is considered to be a bearish engulfing candlestick chart pattern.

The Travelers Companies, Inc. (NYSE:TRV) provides commercial property casualty insurance and asset management services. The Company underwrites homeowners and auto insurance through independent agents. The Financial, Professional, and International Insurance segment provides surety and financial liability coverage, which requires a credit-based underwriting process, and property and casualty products primarily in the U.S., the United Kingdom, Ireland, and Canada. The insurer was founded in 1853 and is headquartered in St. Paul, MN

Travelers' current stock range is defined by calculated support defined at $52.88 and by the resistance level at $61.15, which should be used by traders planning their trades.

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