Dick's, Reversal Soon?

Published on Friday, 08 June 2012 04:09 Written by TradersHuddle Wire

New York, June 8th (TradersHuddle.com) - Shares of Dick's Sporting Goods, Inc. (NYSE:DKS) ended the trading session lower by $0.42 or -0.89% from its previous close. Dick's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Dick's Sporting Goods, Inc. (NYSE:DKS) is a sporting goods retailer that operates stores primarily in the eastern and central United States. The Company's stores offer a broad selection of brand name sporting goods equipment, apparel, and footwear.

Dick's current stock range is determined by calculated support defined at $44.06 and by the resistance level at $48.49, which should be used by traders planning their next move.

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