Shares of Boston Properties Bottoming out?

Published on Saturday, 16 June 2012 09:57 Written by TradersHuddle Wire

New York, June 16th (TradersHuddle.com) - Shares of Boston Properties, Inc. (NYSE:BXP) ended the trading session higher by $0.79 or 0.77% from its previous close. Boston Properties' price action in the session formed what is considered to be a Hammer, where bears drove prices lower intraday. However, the strong finish indicates that bulls regained control, forming a trend reversal.

Boston Properties, Inc. (NYSE:BXP) is a real estate investment trust. The trust owns, manages, and develops office properties in the United States, with a significant presence in Boston, Washington, D.C., Midtown Manhattan and San Francisco.

Boston Properties' stock has been trading in a well defined range with calculated support at $99.33 and resistance at $105.85. This range can be used by traders to plan their next moves.

Traders wanting to establish a position in Boston Properties or traders that are already holding the stock can use the hammer formation to their advantage, since the pattern signal a potential bullish trend reversal.

The Hammer is an important candlestick pattern, as it can mark bottoms and support levels. Further buying pressure, and preferably on expanding volume, is needed before acting, as heavy volume will serve to confirm the validity of the reversal.

In the case of Boston Properties, traders who want to add to their positions or start a new position, need to watch for confirmation of the reversal. Below a Hammer illustration: