Are the Bears Taking Control over Allegheny?

Published on Monday, 09 January 2012 07:13 Written by Christopher Lynn

New York, January 9th (TradersHuddle.com) - Shares of Allegheny Technologies Inc. (NYSE:ATI) ended the trading session lower by $0.23 or -0.48% from its previous close. Allegheny's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Allegheny Technologies, Inc. (NYSE:ATI) manufactures and sells specialty metals worldwide. The Company's products include include titanium and titanium alloys, nickel-based alloys and superalloys, zirconium, hafnium and niobium, stainless and specialty steel alloys.

Allegheny's current stock range is defined by calculated support defined at $46.92 and by the resistance level at $50.85, which should be used by traders planning their trades.

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