Liberty Media Upside Looming?

Published on Monday, 19 December 2011 04:43 Written by Christopher Lynn

New York, December 19th (TradersHuddle.com) - Shares of Liberty Media Corp - Interactive (NASDAQ:LINTA) ended the trading session higher by $0.12 or 0.78% from its previous close. Liberty Media'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.

Liberty Media Corp - Interactive (NASDAQ:LINTA) is a tracking stock issued by Liberty Media Corporation to track the performance of the Interactive group. The Interactive groups interests include a TV home shopping network, Internet shopping, and online travel booking site.

Liberty Media's recent stock range has been formed by a trough where calculated support was defined at $15.13 and by a peak that established the resistance level at $16.50, which could be used by traders planning their trades.

Traders wanting to establish a position in Liberty Media 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: