Are the Bears Taking Control over CBS?

Published on Monday, 23 January 2012 04:39 Written by Christian Paolinetti

New York, January 23rd (TradersHuddle.com) - Shares of CBS Corporation (NYSE:CBS) ended the trading session lower by $0.79 or -2.74% from its previous close. CBS' price action formed what is considered to be a bearish engulfing candlestick chart pattern.

CBS Corporation (NYSE:CBS) is a media company that operates broadcasting, television production, and publishing businesses. The Company operates television and radio stations, produces and syndicates television programs, publishes books, provides online content as well as provides outdoor advertising.

CBS' current stock range is defined by calculated support defined at $24.49 and by the resistance level at $28.64, which should be used by traders planning their trades.

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