Magna Reversal Soon?

Published on Wednesday, 08 February 2012 04:45 Written by TradersHuddle Wire

New York, February 8th (TradersHuddle.com) - Shares of Magna International Inc. (NYSE:MGA) ended the trading session lower by $0.3 or -0.69% from its previous close. Magna's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Magna International Inc. (NYSE:MGA) design, develop and manufacture automotive systems, assemblies, modules and components, and engineer and assemble complete vehicles, primarily for sale to original equipment manufacturers. Its capabilities include the design, engineering, testing and manufacture of automotive interior systems; seating systems; closure systems; metal body & chassis systems; mirror systems; exterior systems; roof systems; electronic systems; powertrain systems as well as complete vehicle engineering and assembly. Magna operates around the world.

Magna's current stock range is defined by calculated support defined at $40.65 and by the resistance level at $43.53, which should be used by traders planning their trades.

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