Are the Bears Taking Control over GATX?

Published on Thursday, 02 August 2012 04:39 Written by TradersHuddle Wire

New York, August 2nd (TradersHuddle.com) - Shares of GATX Corporation (NYSE:GMT) ended the trading session lower by $0.74 or -1.76% from its previous close. GATX's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

GATX Corporation (NYSE:GMT) provides leasing and related services to customers operating rail, marine and other targeted assets. The Company is a full service lessor of rail, tank and freight cars. GATX also manages transportation and other leased assets on behalf of third parties.

GATX's current stock range is determined by calculated support defined at $36.68 and by the resistance level at $42.89, which should be used by traders planning their next move.

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