Are the Bears Taking Control over Shire?

Published on Monday, 16 April 2012 04:27 Written by TradersHuddle Wire

New York, April 16th (TradersHuddle.com) - Shares of Shire PLC (NASDAQ:SHPGY) ended the trading session lower by $0.49 or -0.53% from its previous close. Shire's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Shire PLC (NASDAQ:SHPGY) is one of the leading specialty biopharmaceutical companies in the world. The companybased in Dublin, Ireland focuses its operations on attention deficit and hyperactivity disorders, human genetic therapies, gastrointestinal, and renal diseases.

Shire's current stock range is determined by calculated support defined at $92.33 and by the resistance level at $108.79, which should be used by traders planning their next move.

If traders want to establish a position in Shire, 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 Shire for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: