Bulls taking Control of FirstService?
Published on Monday, 20 August 2012 05:00 Written by TradersHuddle Wire
New York, August 20th (TradersHuddle.com) - Shares of FirstService Corporation (NASDAQ:FSRV) ended the trading session higher by $0.11 or 0.39% from its previous close. FirstService'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.
FirstService Corporation (NASDAQ:FSRV) provides specialized property and business services to corporate, government, and residential customers throughout North America. These services include community association management, security, lawn care, franchising, business outsourcing, and specialized trade material fulfillment.
FirstService's recent stock range was formed by a trough where calculated support was defined at $25.02 and by a peak that established the resistance level at $28.02. This range could be used by traders managing their positions.
Traders wanting to establish a position in FirstService 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:
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