Ciena Had a Bearish Engulfing Candle

Published on Tuesday, 24 January 2012 04:54 Written by TradersHuddle Staff

New York, January 24th (TradersHuddle.com) - Shares of Ciena Corporation (NASDAQ:CIEN) ended the trading session lower by $0.4 or -2.62% from its previous close. Ciena's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Ciena Corporation (NASDAQ:CIEN) develops and markets communications network platforms. The company offers broadband access, data and optical networking platforms, software tools, and global network services support worldwide telecom and cable/MSO services providers.

Ciena's current stock range is defined by calculated support defined at $10.30 and by the resistance level at $15.63, which should be used by traders planning their trades.

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