Candlesticks - Bearish Engulfing PACCAR

Published on Friday, 27 January 2012 04:51 Written by Danny Miller

New York, January 27th (TradersHuddle.com) - Shares of PACCAR Inc. (NASDAQ:PCAR) ended the trading session lower by $1 or -2.2% from its previous close. PACCAR's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

PACCAR Inc. (NASDAQ:PCAR) designs, develops, manufactures, and distributes light-, medium-, and heavy-duty trucks, and related aftermarket distribution of parts. The company offer its products under the Kenworth, Peterbilt, and DAF names.

PACCAR's current stock range is defined by calculated support defined at $35.38 and by the resistance level at $44.16, which should be used by traders planning their trades.

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