Is this a Reversal Pattern for Clear Channel Outdoor ?

Published on Thursday, 09 February 2012 18:27 Written by TradersHuddle Wire

New York, February 9th (TradersHuddle.com) - Shares of Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) ended the trading session lower by $0.02 or -0.16% from its previous close. Clear Channel Outdoor's price action in today's session formed what is considered to be a Hammer, where bears drove prices lower intraday. However, the strong finish indicates that bulls regained control forming a trend reversal.

Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) is an advertising company. The Company offers advertising opportunities through billboards, street furniture displays, transit displays, and other out-of-home advertising displays.

Clear Channel Outdoor's stock has been trading in a well defined range with support at $11.86 and resistance at $12.64, this range is also being used by traders to plan their positions.

Traders wanting to establish a position in Clear Channel Outdoor or traders that are already holding the stock can use the hammer formation to their advantage, since the pattern signal a potential bullish trend reversal.

Hammers are important candlesticks as they mark bottoms and support levels. Further buying pressure, and preferably on expanding volume, is needed before acting, as heavy volume will serve to confirm the validity of the reversal.

In the case of Clear Channel Outdoor, traders who want to add to their positions or start a new position, need to watch for confirmation of the reversal. Below a Hammer illustration: