Aspen Insurance Formed a Bearish Engulfing Candle

Published on Saturday, 21 July 2012 00:42 Written by TradersHuddle Wire

New York, July 21st (TradersHuddle.com) - Shares of Aspen Insurance Holdings Ltd. (NYSE:AHL) ended the trading session lower by $0.28 or -0.95% from its previous close. Aspen's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Aspen Insurance Holdings Ltd. (NYSE:AHL) is a holding company that provides property and casualty insurance and reinsurance. The Company offers property and liability insurance in the United Kingdom and United States, and marine, energy, and aviation insurance and reinsurance worldwide.

Aspen's current stock range is determined by calculated support defined at $27.52 and by the resistance level at $29.99, which should be used by traders planning their next move.

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