Are the Bears Taking Control over Macy's?

Published on Friday, 08 June 2012 04:42 Written by TradersHuddle Wire

New York, June 8th (TradersHuddle.com) - Shares of Macy's, Inc. (NYSE:M) ended the trading session lower by $0.63 or -1.69% from its previous close. Macy's, Inc. price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Macy's, Inc. (NYSE:M) operates department stores in the United States. The New York, NY based company also operates direct mail catalog and electronic commerce subsidiaries. Macy's retail stores sell a wide range of merchandise, including men's, women's and children's apparel and accessories, cosmetics, home furnishings and other consumer goods.

Macy's, Inc. current stock range is determined by calculated support defined at $35.88 and by the resistance level at $39.05, which should be used by traders planning their next move.

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