Hartford Financial Bullish Engulfing Formed
Published on Friday, 01 February 2013 20:42 Written by TradersHuddle Wire
New York, February 1st (TradersHuddle.com) - Shares of Hartford Financial Services Group, Inc. (NYSE:HIG) ended the trading session higher by $0.4 or 1.6% from its previous close. Hartford Financial'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.
The Hartford Financial Services Group, Inc. (NYSE:HIG) provides property and casualty insurance, annuities, life insurance, investment services, and group insurance. The Conneticutt based insurer operates around the world.
Hartford Financial's recent stock range was formed by a trough where calculated support was defined at $21.11 and by a peak that established the resistance level at $24.72. This range could be used by traders managing their positions.
Traders wanting to establish a position in Hartford Financial 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: