Are the Bears Taking Control over Eldorado?

Published on Wednesday, 08 February 2012 04:21 Written by TradersHuddle Wire

New York, February 8th (TradersHuddle.com) - Shares of Eldorado Gold Corporation (NYSE:EGO) ended the trading session higher by $0.02 or 0.14% from its previous close. Eldorado's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Eldorado Gold Corporation (NYSE:EGO) engages in the exploration, development, mining, processing, reclamation, and production of primarily gold and iron properties. It owns and operates the Kisladag gold mine in Turkey; and the Tanjianshan, Jinfeng, and White Mountain gold mines in China, as well as the development projects, including the Efemcukuru gold project located in Turkey, the Eastern Dragon gold project in China, the Perama Hill gold project in Greece, and the Vila Nova iron ore project in Brazil. the company is headquartered in Vancouver, Canada.

Eldorado's current stock range is defined by calculated support defined at $13.05 and by the resistance level at $15.62, which should be used by traders planning their trades.

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