Sequenom - Bulls taking control?

Published on Monday, 30 January 2012 04:18 Written by TradersHuddle Staff

New York, January 30th (TradersHuddle.com) - Shares of Sequenom Inc. (NASDAQ:SQNM) ended the trading session lower by $0.02 or -0.47% from its previous close. Sequenom's price action developed what can be considered a reversal pattern in the form of a tweezer bottom, which is a candlestick pattern that is usually formed at the end of a downtrend. The tweezer bottom is considered a reversal pattern, so traders will need to monitor the the price action for confirmation.

Sequenom Inc. (NASDAQ:SQNM) provides genetic analysis products that translate genomic science into solutions for biomedical research, agricultural applications, molecular medicine and non-invasive prenatal diagnostics research.

Traders looking for an entry in Sequenom can use the tweezers as a good reference point to establish the long position, as the pattern provides defined risk by giving a good reference point for support.

Traders are always looking for tweezer bottoms as they give an entry with a small risk defined, they are a leading indicator that provides an alert for a trend reversal or stabilization. The tweezers imply that bears or sellers were not able to push the stock lower, therefore providing the opportunity to look for a bounce. Below an example of Tweezer Bottom reversal patterns: