Buckeye Reversal Soon?

Published on Monday, 16 January 2012 20:09 Written by Christopher Lynn

New York, January 16th (TradersHuddle.com) - Shares of Buckeye Technologies Inc. (NYSE:BKI) ended the trading session higher by $0.37 or 1.06% from its previous close. Buckeye's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Buckeye Technologies Inc. (NYSE:BKI) is a leading producer of cellulose-based specialty products. Buckeye is the only manufacturer in the world offering cellulose-based specialty products made from both wood and cotton and utilizing wetlaid and airlaid technologies. It operates manufacturing facilities in the United States, Canada, Germany and Brazil. Its product lines are grouped into four categories: chemical cellulose, customized fibers, fluff pulp and nonwoven materials. It manages these products within two reporting segments: specialty fibers and nonwoven materials. The chemical cellulose and customized fibers are derived from wood and cotton cellulose materials using wetlaid technologies. Fluff pulps are derived from wood using wetlaid technology. Wetlaid technologies consists of cellulose manufacturing processes, in which fibers are deposited using water.

Buckeye's current stock range is defined by calculated support defined at $29.90 and by the resistance level at $36.13, which should be used by traders planning their trades.

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