Phillips-Van Heusen Upside Looming?

Published on Tuesday, 17 January 2012 04:24 Written by Danny Miller

New York, January 17th (TradersHuddle.com) - Shares of Phillips-Van Heusen Corporation (NYSE:PVH) ended the trading session lower by $0.77 or -1.01% from its previous close. Phillips-Van Heusen's 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.

Phillips-Van Heusen Corporation (NYSE:PVH) designs, sources, manufactures, and markets apparel and footwear for the whole family. The Company markets its products at a wholesale level through department store chains and directly to consumers through retail stores. The company uses multibrand brand strategy to reach different markets, some of its brands include Arrow, Van-Heusen, Calvin Klein, IZOD, Geoffrey Beene, Kenneth Cole, and DKNY.

Phillips-Van Heusen's recent stock range has been formed by a trough where calculated support was defined at $70.59 and by a peak that established the resistance level at $74.76, which could be used by traders planning their trades.

Traders wanting to establish a position in Phillips-Van Heusen 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: