Teco Energy - Bulls taking control?

Published on Monday, 09 January 2012 19:18 Written by Christopher Lynn

New York, January 9th (TradersHuddle.com) - Shares of TECO Energy, Inc. (NYSE:TE) ended the trading session higher by $0.01 or 0.05% from its previous close. Teco'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.

TECO Energy, Inc. (NYSE:TE) is a diversified, energy-related utility holding company. The Company, through various subsidiaries, provides retail electric service to customers in west central Florida, as well as purchases, distributes, and markets natural gas for residential, commercial, industrial, and electric power generation customers.

Traders looking for an entry in Teco Energy 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: