Is Domtar Trade Over?

Published on Monday, 30 July 2012 04:03 Written by TradersHuddle Wire

New York, July 30th (TradersHuddle.com) - Shares of Domtar Corporation (NYSE:UFS) ended the trading session lower by $0.49 or -0.67% from its previous close. Domtar's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Domtar Corporation (NYSE:UFS) produces uncoated freesheet paper. The Company manufactures business papers, commercial printing and publication papers, and technical and specialty papers. Domtar manages forestland in Canada and the United States, and produces lumber and other wood products.

Domtar's current stock range is determined by calculated support defined at $72.22 and by the resistance level at $78.63, which should be used by traders planning their next move.

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