Corinthian Colleges Bullish Signs

Published on Friday, 02 November 2012 04:57 Written by TradersHuddle Wire

New York, November 2nd (TradersHuddle.com) - Shares of Corinthian Colleges, Inc. (NASDAQ:COCO) ended the trading session higher by $0.13 or 4.59% from its previous close. Corinthian'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.

Corinthian Colleges, Inc. (NASDAQ:COCO) is a private, for-profit post-secondary education company operating in the United States. The Company currently operates colleges in various states. Corinthian offers a variety of degrees and diploma programs in the healthcare, electronics, and business fields.

Corinthian's recent stock range was formed by a trough where calculated support was defined at $2.42 and by a peak that established the resistance level at $2.73. This range could be used by traders managing their positions.

Traders wanting to establish a position in Corinthian Colleges 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: