Is this a Reversal Pattern for Dresser-Rand ?

drc New York, March 6th (TradersHuddle.com) - Shares of Dresser-Rand Group, Inc. (NYSE:DRC) ended the trading session higher by $0.52 or 0.93% from its previous close. Dresser-Rand's price action in the session formed what is considered to be a Hammer, where bears drove prices lower intraday. However, the strong finish indicates that bulls regained control, forming a trend reversal.

Dresser-Rand Group, Inc. (NYSE:DRC) manufactures equipment for the oil and natural gas industries. The Company manufactures oil and gas production, high-pressure field injection, pipeline, refinery, natural gas processing, and petrochemical production equipment. Its products are custom-engineered rotating equipment solutions for long-life, critical applications in the oil, gas, petrochemical and process industries, these products include, centrifugal and reciprocating gas compressors, gas and steam turbines, gas expanders and associated control panels.

Dresser-Rand's stock has been trading in a well defined range with calculated support at $ and resistance at $. This range can be used by traders to plan their next moves.

Traders wanting to establish a position in Dresser-Rand or traders that are already holding the stock can use the hammer formation to their advantage, since the pattern signal a potential bullish trend reversal.

The Hammer is an important candlestick pattern, as it can mark bottoms and support levels. Further buying pressure, and preferably on expanding volume, is needed before acting, as heavy volume will serve to confirm the validity of the reversal.

In the case of Dresser-Rand, traders who want to add to their positions or start a new position, need to watch for confirmation of the reversal. Below a Hammer illustration:

Note - Automated Content Created By TradersHuddle's Technical Scanner




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