Candlesticks - Bearish Engulfing Genuine Parts

Published on Friday, 03 February 2012 05:00 Written by TradersHuddle Staff

New York, February 3rd (TradersHuddle.com) - Shares of Genuine Parts Company (NYSE:GPC) ended the trading session lower by $0.2 or -0.31% from its previous close. Genuine Parts' price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Genuine Parts Company (NYSE:GPC) distributes automotive replacement parts, industrial replacement parts, office products, and electrical/electronic materials in the United States, Puerto Rico, Canada, and Mexico. The company owns and operates automotive parts distribution centers and automotive parts stores under the NAPA name.

Genuine Parts' current stock range is defined by calculated support defined at $57.08 and by the resistance level at $65.38, which should be used by traders planning their trades.

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