Bulls in Charge of Carlisle

Published on Tuesday, 11 September 2012 04:57 Written by TradersHuddle Wire

New York, September 11th (TradersHuddle.com) - Shares of Carlisle Companies Incorporated (NYSE:CSL) ended the trading session higher by $0.01 or 0.02% from its previous close. Carlisle'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.

Carlisle Companies Incorporated (NYSE:CSL) is a diversified manufacturing Company. It manufactures and distributes construction materials, transportation products, and general industry products. The Company manufactures a variety of products for the roofing, real estate, construction, trucking, food-service, aircraft manufacturing, lawn and garden, and other industries.

Carlisle's recent stock range was formed by a trough where calculated support was defined at $47.55 and by a peak that established the resistance level at $53.89. This range could be used by traders managing their positions.

Traders wanting to establish a position in Carlisle 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: