Bulls in Charge of Sunoco

Published on Friday, 10 August 2012 04:45 Written by TradersHuddle Wire

New York, August 10th (TradersHuddle.com) - Shares of Sunoco, Inc. (NYSE:SUN) ended the trading session higher by $0.4 or 0.84% from its previous close. Sunoco'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.

Sunoco, Inc. (NYSE:SUN) is a petroleum refiner and marketer and chemicals manufacturer with interests in logistics and coke making. The Company's petroleum products include fuels, lubricants, and petrochemicals. Sunoco's operations are conducted principally in the eastern half of the United States while its coke making operations are in Virginia, Indiana, Ohio and Vitoria Brazil.

Sunoco's recent stock range was formed by a trough where calculated support was defined at $45.39 and by a peak that established the resistance level at $50.89. This range could be used by traders managing their positions.

Traders wanting to establish a position in Sunoco 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: