Manitowoc Formed a Tweezer Bottom
Published on Friday, 03 August 2012 04:24 Written by TradersHuddle Wire
New York, August 3rd (TradersHuddle.com) - Shares of Manitowoc Company, Inc. (NYSE:MTW) ended the trading session lower by $0.42 or -3.5% from its previous close. Manitowoc's price action developed what can be considered a reversal pattern in the form of a tweezer bottom, which is a candlestick pattern that is usually formed at the end of a downtrend. The tweezer bottom is considered a reversal pattern, so traders will need to monitor the price action for confirmation.
The Manitowoc Company, Inc. (NYSE:MTW) is a diversified industrial manufacturer that operates in the cranes and lifting equipment market and on the foodservice equipment market. Its products include lattice-boom cranes, tower cranes, mobile telescopic cranes, and boom trucks as well as ice making machines, refrigerators, and freezers.
Traders looking for an entry in Manitowoc can use the tweezers as a good reference point to establish the long position, as the pattern provides defined risk by giving a good reference point for support.
Traders look for tweezer bottoms, as they provide an entry with a small defined risk. They are a leading indicator that provide an alert for a trend reversal or stabilization. The tweezers imply that bears or sellers were not able to push the stock lower, therefore providing the opportunity to look for a bounce. Below an example of a Tweezer Bottom reversal pattern:
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