Arkansas Best Bullish Signs

Published on Friday, 15 June 2012 04:30 Written by TradersHuddle Wire

New York, June 15th (TradersHuddle.com) - Shares of Arkansas Best Corporation (NASDAQ:ABFS) ended the trading session higher by $0.55 or 5.02% from its previous close. Arkansas Best'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.

Arkansas Best Corporation (NASDAQ:ABFS) is a diversified holding company involved in motor carrier transportation and intermodal transportation operations. The Company transports a variety of goods around the world.

Arkansas Best's recent stock range was formed by a trough where calculated support was defined at $11.67 and by a peak that established the resistance level at $13.24. This range could be used by traders managing their positions.

Traders wanting to establish a position in Arkansas Best 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: