Marathon Oil: Time for the Bulls?

Published on Thursday, 10 May 2012 04:18 Written by TradersHuddle Wire

New York, May 10th (TradersHuddle.com) - Shares of Marathon Oil Corporation (NYSE:MRO) ended the trading session higher by $0.27 or 1.03% from its previous close. Marathon'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.

Marathon Oil Corporation (NYSE:MRO), through its subsidiaries, is an oil and natural gas exploration and production firm with operations worldwide. The Company explores for and produces liquid hydrocarbons and natural gas on a worldwide basis. Marathon also mines, extracts and transports bitumen from oil sands deposits in Alberta, Canada.

Traders looking for an entry in Marathon Oil 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: