Are the Bears Taking Control over Nordstrom?

Published on Thursday, 26 January 2012 04:45 Written by Christian Paolinetti

New York, January 26th (TradersHuddle.com) - Shares of Nordstrom, Inc. (NYSE:JWN) ended the trading session lower by $0.88 or -1.77% from its previous close. Nordstrom's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Nordstrom, Inc. (NYSE:JWN) is a fashion retailer of apparel, shoes, and accessories for men, women, and children. The Company operates through multiple retail channels, discount stores, boutiques, catalogs, and on the Internet.

Nordstrom's current stock range is defined by calculated support defined at $44.22 and by the resistance level at $50.75, which should be used by traders planning their trades.

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