CBS - Shares Seeking Direction
Published on Friday, 17 August 2012 04:54 Written by TradersHuddle Wire
New York, August 17th (TradersHuddle.com) - Shares of CBS Corporation (NYSE:CBS) closed the trading day lower by $0.03 or -0.08% from its previous close. CBS' price action formed what is considered to be a doji close, where the open and close prices are very close to each other, mainly signaling an indecision between buyers and sellers.
CBS Corporation (NYSE:CBS) is a media company that operates broadcasting, television production, and publishing businesses. The Company operates television and radio stations, produces and syndicates television programs, publishes books, provides online content as well as provides outdoor advertising.
CBS' trading range is defined by a trough, which marked calculated support at $29.85 and by a peak that set the resistance point at $35.90. These levels are closely watched by traders managing their positions.
Traders wanting to establish a position in CBS or traders that are already holding the stock can use the doji close to their advantage, since the pattern present a short-term pause in the stock's price action. This pause results in an entry point for traders depending of which way the stock resolves this short-term indecision.
The Doji is an important candlestick pattern that provides information on their own and as components in a number of important patterns. Doji form when a security's open and close are virtually equal. The length of the upper and lower shadows can vary and the resulting candlestick looks like a cross, inverted cross or plus sign. Alone, doji are neutral patterns.
Any bullish or bearish bias is based on preceding price action and future confirmation. In the case of CBS, given that the stock finished the session lower, bears should monitor the stock, as it could reverse if it manages to trade above its intraday high. Below a Doji illustration:
- Apache To Sell Selected Canadian Oil And Gas Assets For $112 Million In Two Transactions
- Broadcom - Worst Performing Semiconductor
- Top Performing Dow Component: United Technologies
- Apache Donates 1 Millionth Tree For Black Bear Habitat
- Intel Is Close to Important Technical Levels
- Oando Energy Resources Provides an Update on the ConocoPhillips Acquisition
- TradersHuddle Mid-day Update: Dow Jones Higher Top Performers: UTX, TRV, PG
- Sector Mid-Day Wrap - Semis Higher: RBCN, POWI, CRUS
- Intel Is Moving Above Resistance
- Sector Wrap - Semis Higher: RBCN, POWI, CRUS
Related Partner Headlines
Recent Trading Ideas
Latest Partner Headlines