Bulls taking over on Quicksilver Resources?

Published on Friday, 20 April 2012 04:15 Written by TradersHuddle Wire

New York, April 20th (TradersHuddle.com) - Shares of Quicksilver Resources Inc. (NYSE:KWK) ended the trading session lower by $0.03 or -0.73% from its previous close. Quicksilver's price action developed what can be considered a reversal pattern in the form of a tweezer bottom, which is a candlestick pattern that is usually formed at the end of a downtrend. The tweezer bottom is considered a reversal pattern, so traders will need to monitor the price action for confirmation.

Quicksilver Resources Inc. (NYSE:KWK) is an exploration and production company engaged in the development and production of long-lived natural gas and oil properties onshore North America. Based in Fort Worth, Texas, the company is widely recognized as a leader in the development and production of natural gas from unconventional reservoirs including shale gas, coal bed methane and tight gas sands.

Traders looking for an entry in Quicksilver Resources can use the tweezers as a good reference point to establish the long position, as the pattern provides defined risk by giving a good reference point for support.

Traders look for tweezer bottoms, as they provide an entry with a small defined risk. They are a leading indicator that provide an alert for a trend reversal or stabilization. The tweezers imply that bears or sellers were not able to push the stock lower, therefore providing the opportunity to look for a bounce. Below an example of a Tweezer Bottom reversal pattern: