Shares of Brown & Brown Hesitating?
Published on Tuesday, 21 August 2012 04:48 Written by TradersHuddle Wire
New York, August 21st (TradersHuddle.com) - Shares of Brown & Brown, Inc. (NYSE:BRO) closed the trading day lower by $0.16 or -0.62% from its previous close. Brown & Brown's 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.
Brown & Brown, Inc. (NYSE:BRO) provide a range of insurance and reinsurance products and services. The Company also offers risk management, employee benefit administration, and managed health care services.
Brown & Brown's trading range is defined by a trough, which marked calculated support at $24.93 and by a peak that set the resistance point at $28.17. These levels are closely watched by traders managing their positions.
Traders wanting to establish a position in Brown & Brown 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 Brown & Brown, 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:
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