Bulls taking over on Dick's?

Published on Friday, 29 June 2012 04:12 Written by TradersHuddle Wire

New York, June 29th (TradersHuddle.com) - Shares of Dick's Sporting Goods, Inc. (NYSE:DKS) ended the trading session lower by $0.46 or -0.98% from its previous close. Dick's price action developed what can be considered a reversal pattern in the form of a tweezer bottom, which is a candlestick pattern that is usually formed at the end of a downtrend. The tweezer bottom is considered a reversal pattern, so traders will need to monitor the price action for confirmation.

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.

Traders looking for an entry in Dick's can use the tweezers as a good reference point to establish the long position, as the pattern provides defined risk by giving a good reference point for support.

Traders look for tweezer bottoms, as they provide an entry with a small defined risk. They are a leading indicator that provide an alert for a trend reversal or stabilization. The tweezers imply that bears or sellers were not able to push the stock lower, therefore providing the opportunity to look for a bounce. Below an example of a Tweezer Bottom reversal pattern: