QIAGEN Ready for some Upside?

Published on Wednesday, 21 December 2011 18:18 Written by Danny Miller

New York, December 21st (TradersHuddle.com) - Shares of QIAGEN N.V. (NASDAQ:QGEN) ended the trading session lower by $0.21 or -1.55% from its previous close. QIAGEN's price action developed what can be considered a reversal pattern in the form of a tweezer bottom, which is a candlestick pattern that is usually formed at the end of a downtrend. The tweezer bottom is considered a reversal pattern, so traders will need to monitor the the price action for confirmation.

QIAGEN N.V. (NASDAQ:QGEN) provides sample and assay technologies. Its technologies are used to process biological samples and to analyze DNA and RNA. QIAGEN provides these technologies to customers conducting molecular diagnostics, applied testing, pharmaceutical R&D and academic research.

Traders looking for an entry in QIAGEN can use the tweezers as a good reference point to establish the long position, as the pattern provides defined risk by giving a good reference point for support.

Traders are always looking for tweezer bottoms as they give an entry with a small risk defined, they are a leading indicator that provides an alert for a trend reversal or stabilization. The tweezers imply that bears or sellers were not able to push the stock lower, therefore providing the opportunity to look for a bounce. Below an example of Tweezer Bottom reversal patterns: