Is Skechers Trade Over?

Published on Monday, 21 January 2013 04:30 Written by TradersHuddle Wire

New York, January 21st (TradersHuddle.com) - Shares of Skechers U.S.A., Inc. (NYSE:SKX) ended the trading session lower by $0.38 or -2.02% from its previous close. Skechers' price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Skechers U.S.A., Inc. (NYSE:SKX) designs, develops, markets and distributes branded contemporary casual, active, rugged, and lifestyle footwear for men, women, and children.

Skechers' current stock range is determined by calculated support defined at $17.02 and by the resistance level at $19.29, which should be used by traders planning their next move.

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