Ameristar Casinos Upside Looming?

Published on Wednesday, 01 February 2012 18:15 Written by Danny Miller

New York, February 1st (TradersHuddle.com) - Shares of Ameristar Casinos, Inc. (NASDAQ:ASCA) ended the trading session higher by $1.38 or 7.06% from its previous close. Ameristar Casinos' 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.

Ameristar Casinos, Inc. (NASDAQ:ASCA) is a gaming company that owns and operates casinos and related hotel, entertainment, and food and beverage facilities. Its properties are located in Nevada, Mississippi, Illinois, Missouri, Colorado, Idaho, and Iowa.

Ameristar Casinos' recent stock range has been formed by a trough where calculated support was defined at $19.28 and by a peak that established the resistance level at $20.63, which could be used by traders planning their trades.

Traders wanting to establish a position in Ameristar Casinos 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: