Agrium Bullish Signs

Published on Thursday, 27 September 2012 04:51 Written by TradersHuddle Wire

New York, September 27th (TradersHuddle.com) - Shares of Agrium Inc. (NYSE:AGU) ended the trading session higher by $0.67 or 0.66% from its previous close. Agrium'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.

Agrium Inc. (NYSE:AGU) supplies nitrogen, potash and phosphate for agricultural, industrial, and specialty use. The Company operates throughout the America's while it markets its products globally.

Agrium's recent stock range was formed by a trough where calculated support was defined at $96.53 and by a peak that established the resistance level at $106.10. This range could be used by traders managing their positions.

Traders wanting to establish a position in Agrium 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: