Are the Bears Taking Control over W.W. Grainger?

Published on Tuesday, 21 August 2012 04:12 Written by TradersHuddle Wire

New York, August 21st (TradersHuddle.com) - Shares of W.W. Grainger, Inc. (NYSE:GWW) ended the trading session lower by $1.48 or -0.71% from its previous close. Grainger's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

W.W. Grainger, Inc. (NYSE:GWW) is a distribution company. The company distributes maintenance, repair and operating supplies, and related information to the commercial, industrial, contractor, and institutional markets in North America and Japan.

Grainger's current stock range is determined by calculated support defined at $197.16 and by the resistance level at $209.97, which should be used by traders planning their next move.

If traders want to establish a position in W.W. Grainger, they need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal in the current price action. The Bearish engulfing pattern is a leading warning sign; therefore, traders should closely monitor W.W. Grainger for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: