NCR Formed a Tweezer Bottom

Published on Wednesday, 18 January 2012 04:48 Written by Danny Miller

New York, January 18th (TradersHuddle.com) - Shares of NCR Corporation (NYSE:NCR) ended the trading session lower by $0.06 or -0.36% from its previous close. NCR'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.

NCR Corporation (NYSE:NCR) manufactures financial transaction machines and other products. The Company manufactures automated teller machines (ATM), self-checkout and self-service kiosks, point-of-sale workstations and scanners; manufactures printer consumable products; and manages networks and servers for ATMs and kiosks.

Traders looking for an entry in NCR 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: