Bulls in Charge of Waters

Published on Thursday, 12 January 2012 04:36 Written by Danny Miller

New York, January 12th (TradersHuddle.com) - Shares of Waters Corporation (NYSE:WAT) ended the trading session higher by $1.25 or 1.69% from its previous close. Waters' 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.

Waters Corporation (NYSE:WAT) provides high-performance liquid chromatography products and services. The Company distributes its products worldwide to a wide range of industries such as pharmaceuticals, chemicals, and environmental testing.

Waters' recent stock range has been formed by a trough where calculated support was defined at $70.88 and by a peak that established the resistance level at $76.82, which could be used by traders planning their trades.

Traders wanting to establish a position in Waters 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: