Tweezer Top Pattern in Coldwater Creek

cwtr New York, October 29th (TradersHuddle.com) - Coldwater Creek Inc. (NASDAQ:CWTR) closed the trading session higher by $0.01 or 0.25% from its previous close. The latest price action developed a short term reversal pattern in the form of a tweezer top, which is a candlestick pattern that is usually formed at the end of an uptrend. Given that the tweezer top is considered a reversal pattern, traders with long positions need to monitor the price action for confirmation of weakness, and plan the position accordingly.

Coldwater Creek Inc. (NASDAQ:CWTR) is a specialty direct mail retailer of apparel, gifts, jewelry, and home furnishings. The Company markets its merchandise primarily through catalogs, including Northcountry, Spirit of the West, Natural Elements, and Home.

Coldwater Creek's stock has been in a defined range with calculated support at $3.56 and resistance at $4.36. Given the possibility of short-term weakness in the stock's price, this range could be used by traders managing their positions.

Tweezer tops are exactly the opposite of tweezer bottoms, as they define a resistance point for Coldwater Creek that needs to be digested prior for the stock to move to a higher level.

Tweezer tops can be formed at the end of an uptrend, at a clear horizontal resistance point, or within a downtrend when price action is dealing with the declining resistance trend. Like any other candlestick pattern, it needs confirmation by trading below the previous day low. Below there is an example of the Tweezer Top reversal pattern:

TradersHuddle Search

Stock Search:


Site Search:

Loading

Technical Scans

Recent Trading Ideas

Latest Partner Headlines

Stock Market

Loading
Chart
o Dow Jones 16,614.81 ▲215.14 (1.31%)
o S&P 500 1,941.28 ▲37.27 (1.96%)
o NASDAQ 4,419.48 ▲103.40 (2.40%)
INDEXDJX:.DJI

Dow Jones

Company ID [INDEXDJX:.DJI] Last trade:16,614.81 Trade time:4:34PM EDT Value change:▲215.14 (1.31%)
INDEXSP:.INX

S&P 500

Company ID [INDEXSP:.INX] Last trade:1,941.28 Trade time:4:34PM EDT Value change:▲37.27 (1.96%)
INDEXNASDAQ:.IXIC

NASDAQ

Company ID [INDEXNASDAQ:.IXIC] Last trade:4,419.48 Trade time:5:15PM EDT Value change:▲103.40 (2.40%)

In The Wires

Copyright © 2013 TradersHuddle.com. All Rights Reserved.