Candlesticks - Bearish Engulfing Ternium

Published on Friday, 27 January 2012 05:00 Written by Christian Paolinetti

New York, January 27th (TradersHuddle.com) - Shares of Ternium S.A. (NYSE:TX) ended the trading session lower by $0.38 or -1.64% from its previous close. Ternium's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Ternium S.A. (NYSE:TX) is a steel company headquartered in Argentina. The company manufactures and process a range of flat and long steel products for customers active in the construction, home appliances, capital goods, container, food, energy and automotive industries. Ternium produces and distributes a range of finished and semi-finished steel products, including steel products such as cold-rolled coils and sheets, galvanized and electrogalvanized sheets, pre-painted sheets, tin plate, welded pipes, hot-rolled pickled and annealed and tailor-made flat products. The Company operates in three segments: flat steel products, long steel products and others.

Ternium's current stock range is defined by calculated support defined at $16.76 and by the resistance level at $23.37, which should be used by traders planning their trades.

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