Coca-Cola Enterprises Bullish Engulfing Formed

Published on Tuesday, 01 May 2012 04:09 Written by TradersHuddle Wire

New York, May 1st (TradersHuddle.com) - Shares of Coca-Cola Enterprises, Inc. (NYSE:CCE) ended the trading session higher by $0.38 or 1.28% from its previous close. Coca-Cola Enterprises' price action formed what is considered to be a bullish engulfing candle that could very well signal a continuation of trend or reversal of the ongoing weakness.

Coca-Cola Enterprises, Inc. (NYSE:CCE) engages in the manufacture, distribution, and marketing of nonalcoholic beverages. The company offers its products principally under the Coca-Cola classic, Sprite, Dasani, POWERADE, Coca-Cola, Diet Coke/Coca-Cola light, Fanta, and Coca-Cola Zero brand names.

Coca-Cola Enterprises' recent stock range was formed by a trough where calculated support was defined at $27.26 and by a peak that established the resistance level at $29.92. This range could be used by traders managing their positions.

Traders wanting to establish a position in Coca-Cola Enterprises or traders that are already holding the stock can use the bullish engulfing pattern to their advantage. The pattern provides a defined risk, as it shows where the bears were able to push the stock down, before the bulls step in with a bid.

The bullish engulfing pattern is a leading indicator that provides an alert to the bulls that the trend will continue or that there is an immediate reversal to the short-term weakness seen on the stock. Below an Engulfing Bullish Candle Illustration: