Candlesticks - Bearish Engulfing Potash

Published on Tuesday, 31 July 2012 04:51 Written by TradersHuddle Wire

New York, July 31st (TradersHuddle.com) - Shares of Potash Corporation of Saskatchewan Inc. (NYSE:POT) ended the trading session lower by $0.74 or -1.62% from its previous close. Potash's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Potash Corporation of Saskatchewan Inc. (NYSE:POT) produces potash, phosphate, and nitrogen for the agricultural and industrial industries worldwide. The Company operates in Canada, Chile, the United States, Brazil, and Trinidad.

Potash's current stock range is determined by calculated support defined at $42.96 and by the resistance level at $46.16, which should be used by traders planning their next move.

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