Bulls in Charge of NCR

Published on Friday, 17 August 2012 04:09 Written by TradersHuddle Wire

New York, August 17th (TradersHuddle.com) - Shares of NCR Corporation (NYSE:NCR) ended the trading session higher by $0.35 or 1.56% from its previous close. NCR'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.

NCR Corporation (NYSE:NCR) manufactures financial transaction machines and other products. The Company manufactures automated teller machines (ATM), self-checkout and self-service kiosks, point-of-sale workstations and scanners; manufactures printer consumable products; and manages networks and servers for ATMs and kiosks.

NCR's recent stock range was formed by a trough where calculated support was defined at $22.06 and by a peak that established the resistance level at $25.99. This range could be used by traders managing their positions.

Traders wanting to establish a position in NCR 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: