Rayonier: Waiting for Direction

Published on Friday, 27 July 2012 04:24 Written by TradersHuddle Wire

New York, July 27th (TradersHuddle.com) - Shares of Rayonier, Inc. (NYSE:RYN) closed the trading day flat by $0 or 0% from its previous close. Rayonier's price action formed what is considered to be a doji close, where the open and close prices are very close to each other, mainly signaling an indecision between buyers and sellers.

Rayonier, Inc. (NYSE:RYN) is a leading international forest products company structured as a Real Estate Investment Trust (REIT), with three core businesses: Timber, Real Estate and Performance Fibers. The company own, lease or manage approximately 2.5 million acres of timber and land in the U.S. and New Zealand. Rayonier produces and sells cellulosic fibers, standing timber, real estate, and timberland acreage. Rayonier also produces logs and wood products, and medium density fiberboard.

Rayonier's trading range is defined by a trough, which marked calculated support at $41.33 and by a peak that set the resistance point at $45.88. These levels are closely watched by traders managing their positions.

Traders wanting to establish a position in Rayonier or traders that are already holding the stock can use the doji close to their advantage, since the pattern present a short-term pause in the stock's price action. This pause results in an entry point for traders depending of which way the stock resolves this short-term indecision.

The Doji is an important candlestick pattern that provides information on their own and as components in a number of important patterns. Doji form when a security's open and close are virtually equal. The length of the upper and lower shadows can vary and the resulting candlestick looks like a cross, inverted cross or plus sign. Alone, doji are neutral patterns.

Any bullish or bearish bias is based on preceding price action and future confirmation. In the case of Rayonier, given that the stock finished the session flat, traders will be looking at both sides of the doji; a bullish bias will materialize if the stock manages to break today's intraday high, on the flip side, a bearish bias will haunt the stock if it breaks today's intraday low. Below a Doji illustration: