Is Safeway Trade Over?

Published on Friday, 27 January 2012 04:12 Written by Danny Miller

New York, January 27th (TradersHuddle.com) - Shares of Safeway Inc. (NYSE:SWY) ended the trading session lower by $0.49 or -2.14% from its previous close. Safeway's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Safeway Inc. (NYSE:SWY) operates a grocery and pharmacy chain in the U.S. and Canada. The Company also has a network of distribution, manufacturing, and food processing facilities. Its retail operations are located in California, Oregon, Washington, Alaska, Colorado, Arizona, Texas, the Chicago metropolitan area and the Mid-Atlantic region, British Columbia, Alberta and Manitoba/Saskatchewan.

Safeway's current stock range is defined by calculated support defined at $20.44 and by the resistance level at $21.88, which should be used by traders planning their trades.

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