Candlesticks - Bearish Engulfing Snap-on

Published on Tuesday, 28 August 2012 04:15 Written by TradersHuddle Wire

New York, August 28th (TradersHuddle.com) - Shares of Snap-on, Inc. (NYSE:SNA) ended the trading session lower by $0.14 or -0.2% from its previous close. Snap-on's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Snap-on, Inc. (NYSE:SNA) develops, manufactures, and distributes tool and equipment solutions worldwide. The Company's products include hand and power tools, diagnostics and shop equipment, tool storage products, diagnostics software, and other solutions for the automotive service industry. Customers include professional service technicians and motor service shop owners, among others.

Snap-on's current stock range is determined by calculated support defined at $64.75 and by the resistance level at $70.68, which should be used by traders planning their next move.

If traders want to establish a position in Snap-on, 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 Snap-on for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: