Candlesticks - Bearish Engulfing Valspar
Published on Wednesday, 11 April 2012 04:06 Written by TradersHuddle Wire
New York, April 11th (TradersHuddle.com) - Shares of Valspar Corporation (NYSE:VAL) ended the trading session lower by $1.82 or -3.63% from its previous close. Valspar's price action formed what is considered to be a bearish engulfing candlestick chart pattern.
Valspar Corporation (NYSE:VAL) is a manufacturer and distributor of coatings, coating intermediates, and specialty chemical products. The Company supply customers with the ideal coatings solutions for their needs, including industrial coatings for wood, metal and plastic for OEMs, coatings and inks for rigid packaging, paints, varnishes and stains, primarily for the do-it-yourself market, coatings for refinishing vehicles, high performance floor coatings, and resins and colorants for internal use and for other paint and coatings products.
Valspar's current stock range is determined by calculated support defined at $45.07 and by the resistance level at $50.77, which should be used by traders planning their next move.
If traders want to establish a position in Valspar, they need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal in the current price action. The Bearish engulfing pattern is a leading warning sign; therefore, traders should closely monitor Valspar for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: