Is Southwestern Energy Trade Over?

Published on Thursday, 26 January 2012 21:54 Written by TradersHuddle Staff

New York, January 26th (TradersHuddle.com) - Shares of Southwestern Energy Company (NYSE:SWN) ended the trading session lower by $1.23 or -3.77% from its previous close. Southwestern's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Southwestern Energy Company (NYSE:SWN) is an independent energy company primarily focused on natural gas and crude oil exploration within the United States. The Company operations also include natural gas gathering, transmission, and marketing, as well as natural gas distribution.

Southwestern's current stock range is defined by calculated support defined at $28.72 and by the resistance level at $32.70, which should be used by traders planning their trades.

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