Kellogg Reversal Soon?

Published on Thursday, 09 February 2012 05:06 Written by TradersHuddle Wire

New York, February 9th (TradersHuddle.com) - Shares of Kellogg Company (NYSE:K ) ended the trading session lower by $0.46 or -0.9% from its previous close. Kellogg's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Kellogg Company (NYSE:K ) manufactures and markets ready-to-eat cereal and other convenience foods. The Company's products include cereals, cookies, crackers, toaster pastries, cereal bars, fruit snacks, frozen waffles and veggie foods. Kellogg markets its products in countries around the world.

Kellogg's current stock range is defined by calculated support defined at $49.07 and by the resistance level at $51.12, which should be used by traders planning their trades.

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