Bulls taking Control of Brown & Brown?

Published on Friday, 03 August 2012 04:36 Written by TradersHuddle Wire

New York, August 3rd (TradersHuddle.com) - Shares of Brown & Brown, Inc. (NYSE:BRO) ended the trading session lower by $0.05 or -0.2% from its previous close. Brown & Brown's price action formed what is considered to be a bullish engulfing candle that could very well signal a continuation of trend or reversal of the ongoing weakness.

Brown & Brown, Inc. (NYSE:BRO) provide a range of insurance and reinsurance products and services. The Company also offers risk management, employee benefit administration, and managed health care services.

Brown & Brown's recent stock range was formed by a trough where calculated support was defined at $24.93 and by a peak that established the resistance level at $28.17. This range could be used by traders managing their positions.

Traders wanting to establish a position in Brown & Brown or traders that are already holding the stock can use the bullish engulfing pattern to their advantage. The pattern provides a defined risk, as it shows where the bears were able to push the stock down, before the bulls step in with a bid.

The bullish engulfing pattern is a leading indicator that provides an alert to the bulls that the trend will continue or that there is an immediate reversal to the short-term weakness seen on the stock. Below an Engulfing Bullish Candle Illustration: