Are the Bears Taking Control over Marathon Oil?

Published on Friday, 12 October 2012 05:00 Written by TradersHuddle Wire

New York, October 12th (TradersHuddle.com) - Shares of Marathon Oil Corporation (NYSE:MRO) ended the trading session lower by $0.1 or -0.34% from its previous close. Marathon's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Marathon Oil Corporation (NYSE:MRO), through its subsidiaries, is an oil and natural gas exploration and production firm with operations worldwide. The Company explores for and produces liquid hydrocarbons and natural gas on a worldwide basis. Marathon also mines, extracts and transports bitumen from oil sands deposits in Alberta, Canada.

Marathon's current stock range is determined by calculated support defined at $29.37 and by the resistance level at $31.21, which should be used by traders planning their next move.

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