PolyOne Bullish Signs

Published on Thursday, 03 May 2012 04:46 Written by TradersHuddle Wire

New York, May 3rd (TradersHuddle.com) - Shares of PolyOne Corporation (NYSE:POL) ended the trading session higher by $0.16 or 1.17% from its previous close. PolyOne's 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.

PolyOne Corporation (NYSE:POL) is an international polymer services company with operations in North America, Europe, Asia, Australia, and South America. The Company provides thermoplastic compounds, specialty resins, specialty polymer formulations, engineered films, and color and additive systems. PolyOne also conducts operations in rubber compounding and thermoplastic resin distribution.

PolyOne's recent stock range was formed by a trough where calculated support was defined at $13.07 and by a peak that established the resistance level at $14.05. This range could be used by traders managing their positions.

Traders wanting to establish a position in PolyOne 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: