Bulls in Charge of Vail Resorts

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Bulls in Charge of Vail Resorts

Published on Wednesday, 18 January 2012 18:21 Written by TradersHuddle Staff

mtn New York, January 18th (TradersHuddle.com) - Shares of Vail Resorts, Inc. (NYSE:MTN) ended the trading session higher by $1.45 or 3.62% from its previous close. Vail Resorts' 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.

Vail Resorts, Inc. (NYSE:MTN) operates ski resorts in Colorado that include Vail Mountain, Beaver Creek Resort, Breckenridge Mountain, and Keystone Resort. The resorts are operated year round with summer and winter activities.

Vail Resorts' recent stock range has been formed by a trough where calculated support was defined at $37.54 and by a peak that established the resistance level at $41.60, which could be used by traders planning their trades.

Traders wanting to establish a position in Vail Resorts 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: