Alliant Energy Upside Looming?

Published on Sunday, 22 July 2012 10:54 Written by TradersHuddle Wire

New York, July 22nd (TradersHuddle.com) - Shares of Alliant Energy Corporation (NYSE:LNT) ended the trading session higher by $0.27 or 0.57% from its previous close. Alliant's 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.

Alliant Energy Corporation (NYSE:LNT) provides public-utility service to customers in the Midwest. Its utility subsidiaries serve electric, natural gas, and water customers in Illinois, Iowa, Minnesota, and Wisconsin.

Alliant's recent stock range was formed by a trough where calculated support was defined at $43.00 and by a peak that established the resistance level at $46.00. This range could be used by traders managing their positions.

Traders wanting to establish a position in Alliant Energy 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: