Bears Appeared - LDK Solar

Published on Friday, 20 January 2012 04:27 Written by Christian Paolinetti

New York, January 20th (TradersHuddle.com) - Shares of LDK Solar Co. Ltd. (NYSE:LDK) ended the trading session lower by $0.35 or -6.6% from its previous close. LDK Solar's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

LDK Solar Co. Ltd. (NYSE:LDK) is a manufacturer of multicrystalline solar wafers, which are the principal raw material used to produce solar cells. LDK sells multicrystalline wafers globally to manufacturers of photovoltaic products, including solar cells and solar modules. In addition, the company provides wafering services to monocrystalline and multicrystalline solar cell and module manufacturers.

LDK Solar's current stock range is defined by calculated support defined at $4.06 and by the resistance level at $5.60, which should be used by traders planning their trades.

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