SkyWest, Reversal Soon?

Published on Friday, 22 June 2012 05:06 Written by TradersHuddle Wire

New York, June 22nd (TradersHuddle.com) - Shares of SkyWest, Inc. (NASDAQ:SKYW) ended the trading session lower by $0.13 or -1.87% from its previous close. SkyWest's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

SkyWest, Inc. (NASDAQ:SKYW) operates regional airlines that offer scheduled passenger service to destinations in the United States, Canada, Mexico and the Caribbean.The company operates flights for major airlines like Delta and United

SkyWest's current stock range is determined by calculated support defined at $6.50 and by the resistance level at $6.90, which should be used by traders planning their next move.

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