New York, February 1st (TradersHuddle.com) - Shares of Lincoln Electric Holdings, Inc. (NASDAQ:LECO) ended the trading session higher by $0.07 or 0.13% from its previous close. Lincoln Electric'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.
Lincoln Electric Holdings, Inc. (NASDAQ:LECO) designs and manufactures welding and cutting products. The Company's products include arc welding power sources, wire feeding systems, robotic welding packages, fume extraction equipment, consumable electrodes, fluxes, and regulators and torches used in oxy-fuel welding and cutting.
Lincoln Electric's recent stock range was formed by a trough where calculated support was defined at $42.82 and by a peak that established the resistance level at $51.64. This range could be used by traders managing their positions.
Traders wanting to establish a position in Lincoln Electric 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:
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