Overseas Shipholding Bullish Engulfing Formed

Published on Monday, 30 January 2012 05:00 Written by TradersHuddle Staff

New York, January 30th (TradersHuddle.com) - Shares of Overseas Shipholding Group, Inc. (NYSE:OSG) ended the trading session higher by $0.53 or 4.26% from its previous close. Overseas Shipholding's price action formed what is considered to be a bullish engulfing candle that could very well signal continuation of trend or reversal on ongoing weakness.

Overseas Shipholding Group, Inc. (NYSE:OSG) maintains a fleet of marine transport vessels. The Company charters its ships to oil majors, traders and United States and international governmental agencies. Its ships transport crude oil, refined petroleum products and natural gas.

Overseas Shipholding's recent stock range has been formed by a trough where calculated support was defined at $12.42 and by a peak that established the resistance level at $15.12, which could be used by traders planning their trades.

Traders wanting to establish a position in Overseas Shipholding or traders that are already holding the stock can use the bullish engulfing pattern to their advantage. The pattern provides a defined risk as it shows where the bears were able to push the stock down, before the bulls stepped in.

The bullish engulfing pattern is a leading indicator that provides an alert to the bulls that the trend will continue or that there is an immediate reversal to the short term weakness seen on the stock. Below an Engulfing Bullish Candle Illustration: