Bulls taking over on Tellabs?

tlab New York, March 19th (TradersHuddle.com) - Shares of Tellabs, Inc. (NASDAQ:TLAB) ended the trading session lower by $0.02 or -0.69% from its previous close. Tellabs' price action developed what can be considered a reversal pattern in the form of a tweezer bottom, which is a candlestick pattern that is usually formed at the end of a downtrend. The tweezer bottom is considered a reversal pattern, so traders will need to monitor the price action for confirmation.

Tellabs, Inc. (NASDAQ:TLAB) designs, manufactures, sells, and services voice, data, and video transport and network access systems. The Company's products are used worldwide by public telephone companies, long-distance carriers, alternate service providers, cellular service providers, cable operators.

Traders looking for an entry in Tellabs can use the tweezers as a good reference point to establish the long position, as the pattern provides defined risk by giving a good reference point for support.

Traders look for tweezer bottoms, as they provide an entry with a small defined risk. They are a leading indicator that provide an alert for a trend reversal or stabilization. The tweezers imply that bears or sellers were not able to push the stock lower, therefore providing the opportunity to look for a bounce. Below an example of a Tweezer Bottom reversal pattern:

TradersHuddle Search

Stock Search:


Site Search:

Loading

Technical Scans

Recent Trading Ideas

Latest Partner Headlines

Stock Market

Loading
Chart
o Dow Jones 17,131.97 ▲100.83 (0.59%)
o S&P 500 1,998.98 ▲14.85 (0.75%)
o NASDAQ 4,552.76 ▲33.86 (0.75%)
INDEXDJX:.DJI

Dow Jones

Company ID [INDEXDJX:.DJI] Last trade:17,131.97 Trade time:4:30PM EDT Value change:▲100.83 (0.59%)
INDEXSP:.INX

S&P 500

Company ID [INDEXSP:.INX] Last trade:1,998.98 Trade time:4:30PM EDT Value change:▲14.85 (0.75%)
INDEXNASDAQ:.IXIC

NASDAQ

Company ID [INDEXNASDAQ:.IXIC] Last trade:4,552.76 Trade time:5:15PM EDT Value change:▲33.86 (0.75%)

In The Wires

Copyright © 2013 TradersHuddle.com. All Rights Reserved.