Nexen Reversal Soon?

Published on Wednesday, 14 December 2011 05:00 Written by Danny Miller

New York, December 14th (TradersHuddle.com) - Shares of Nexen Inc. (NYSE:NXY) ended the trading session lower by $0.31 or -2.11% from its previous close. Nexen's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Nexen Inc. (NYSE:NXY), operates as an energy company and explores for, develops, produces and markets crude oil, natural gas and power. Its oil and gas exploration and development activities are conducted in the North Sea, Canada, Gulf of Mexico, offshore West Africa, and Yemen. Nexen is headquartered in Calgary, Canada.

Nexen's current stock range is defined by calculated support defined at $14.56 and by the resistance level at $16.78, which should be used by traders planning their trades.

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