Cabot Oil & Gas Reversal Soon?

Published on Tuesday, 03 January 2012 04:27 Written by Danny Miller

New York, January 3rd (TradersHuddle.com) - Shares of Cabot Oil & Gas Corporation (NYSE:COG) ended the trading session lower by $1.05 or -1.36% from its previous close. Cabot's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Cabot Oil & Gas Corporation (NYSE:COG) is an independent oil and gas company that develops, explores, and extracts oil and gas in properties located in North America. The Company holds interests Appalachian Basin, onshore Gulf Coast, including south and east Texas and north Louisiana, the Rocky Mountains and the Anadarko Basin as well as in the deep gas basin of Western Canada.

Cabot's current stock range is defined by calculated support defined at $71.18 and by the resistance level at $78.87, which should be used by traders planning their trades.

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