Celanese Bearish Signs

Published on Thursday, 02 August 2012 04:30 Written by TradersHuddle Wire

New York, August 2nd (TradersHuddle.com) - Shares of Celanese Corporation (NYSE:CE) ended the trading session higher by $0.32 or 0.84% from its previous close. Celanese's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Celanese Corporation (NYSE:CE) is a global industrial chemicals company. Its business involves processing chemical raw materials, such as ethylene and propylene, and natural products, including natural gas and wood pulp, into chemicals and chemical-based products. The company is a leading producer of acetyl products, which are intermediate chemicals for nearly all major industries, and is the largest producer of vinyl acetate monomer in the world

Celanese's current stock range is determined by calculated support defined at $32.77 and by the resistance level at $39.81, which should be used by traders planning their next move.

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