Boston Properties Upside Looming?

Published on Saturday, 07 July 2012 09:54 Written by TradersHuddle Wire

New York, July 7th (TradersHuddle.com) - Shares of Boston Properties, Inc. (NYSE:BXP) ended the trading session higher by $0.81 or 0.74% from its previous close. Boston Properties' 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.

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' recent stock range was formed by a trough where calculated support was defined at $99.33 and by a peak that established the resistance level at $110.44. This range could be used by traders managing their positions.

Traders wanting to establish a position in Boston Properties 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: