Synovus Upside Looming?

Published on Tuesday, 25 September 2012 05:03 Written by TradersHuddle Wire

New York, September 25th (TradersHuddle.com) - Shares of Synovus Financial Corp. (NYSE:SNV) ended the trading session higher by $0.05 or 2.05% from its previous close. Synovus' 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.

Synovus Financial Corp. (NYSE:SNV) is a financial services holding company based in Coumbus Georgia. The Company, through its subsidiaries, provides commercial and retail banking, as well as investment services, to customers in Georgia, Alabama, South Carolina, Florida and Tennessee.

Synovus' recent stock range was formed by a trough where calculated support was defined at $2.36 and by a peak that established the resistance level at $2.50. This range could be used by traders managing their positions.

Traders wanting to establish a position in Synovus 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: