Jack in the Box Had a Bearish Engulfing Candle

Published on Tuesday, 17 January 2012 18:54 Written by TradersHuddle Staff

New York, January 17th (TradersHuddle.com) - Shares of Jack in the Box Inc. (NASDAQ:JACK) ended the trading session lower by $0.16 or -0.74% from its previous close. Jack in the Box's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Jack in the Box Inc. (NASDAQ:JACK) operates and franchises Jack In the Box fast-food restaurants. Its drive-thru restaurants offer hamburgers, specialty sandwiches, salads, finger foods, and side items.

Jack in the Box's current stock range is defined by calculated support defined at $21.09 and by the resistance level at $22.67, which should be used by traders planning their trades.

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