Bulls taking Control of Teleflex?

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

New York, August 21st (TradersHuddle.com) - Shares of Teleflex Incorporated (NYSE:TFX) ended the trading session higher by $0.24 or 0.38% from its previous close. Teleflex'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.

Teleflex Incorporated (NYSE:TFX) is a global provider of medical technology products. The Company primarily develops, manufactures and supplies single-use medical devices used by hospitals and healthcare providers for common diagnostic and therapeutic procedures in critical care and surgical applications.

Teleflex's recent stock range was formed by a trough where calculated support was defined at $61.27 and by a peak that established the resistance level at $64.67. This range could be used by traders managing their positions.

Traders wanting to establish a position in Teleflex 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: