Bulls Gaining Control - DISH Network

Published on Friday, 10 February 2012 22:57 Written by TradersHuddle Wire

New York, February 10th (TradersHuddle.com) - Shares of DISH Network Corp. (NASDAQ:DISH) ended the trading session lower by $0.12 or -0.42% from its previous close. DISH Network'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.

DISH Network Corp. (NASDAQ:DISH) provides a direct broadcast satellite subscription television service in the United States. The company offers receiver systems and programming through direct sales channels, independent retailers, local and regional consumer electronics stores, nationwide retailers, and telecommunications companies.

DISH Network's stock has been trading in a well defined range with support at $27.78 and resistance at $29.46, this range is also being used by traders to plan their positions.

Traders wanting to establish a position in DISH Network 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 DISH Network, 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: