Bulls in Charge of Regal-Beloit

Published on Sunday, 27 November 2011 21:12 Written by TradersHuddle Staff

New York, November 27th (TradersHuddle.com) - Shares of Regal-Beloit Corporation (NYSE:RBC) ended the trading session higher by $0.18 or 0.38% from its previous close. Regal-Beloit's price action formed what is considered to be a bullish engulfing candle that could very well signal continuation of trend or reversal on ongoing weakness.

Regal-Beloit Corporation (NYSE:RBC) manufactures a line of mechanical products that control motion and torque and electrical products such as motors and generators. Its products include gearboxes, automotive transmissions, rotary cutting tools, electric motors, and electric generators. Regal-Beloit sells its products to distributors, original equipment manufacturers, and end users.

Regal-Beloit's recent stock range has been formed by a trough where calculated support was defined at $47.48 and by a peak that established the resistance level at $56.40, which could be used by traders planning their trades.

Traders wanting to establish a position in Regal-Beloit or traders that are already holding the stock can use the bullish engulfing pattern to their advantage. The pattern provides a defined risk as it shows where the bears were able to push the stock down, before the bulls stepped in.

The bullish engulfing pattern is a leading indicator that provides an alert to the bulls that the trend will continue or that there is an immediate reversal to the short term weakness seen on the stock. Below an Engulfing Bullish Candle Illustration: