Tellabs Formed a Tweezer Bottom

tlab New York, April 17th (TradersHuddle.com) - Shares of Tellabs, Inc. (NASDAQ:TLAB) ended the trading session higher by $0.01 or 0.26% 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:



Related Partner Headlines

    What’s the next under-$10 stock that could be ready to skyrocket? Find out now when you join David Peltier at Stocks Under $10.

    Technical Scans

    Stock Market

    Loading
    Chart
    o Dow Jones 17,712.66 ▲34.43 (0.19%)
    o S&P 500 2,061.02 ▲4.87 (0.24%)
    o NASDAQ 4,891.22 ▲27.86 (0.57%)
    INDEXDJX:.DJI

    Dow Jones

    Company ID [INDEXDJX:.DJI] Last trade:17,712.66 Trade time:4:33PM EDT Value change:▲34.43 (0.19%)
    INDEXSP:.INX

    S&P 500

    Company ID [INDEXSP:.INX] Last trade:2,061.02 Trade time:4:33PM EDT Value change:▲4.87 (0.24%)
    INDEXNASDAQ:.IXIC

    NASDAQ

    Company ID [INDEXNASDAQ:.IXIC] Last trade:4,891.22 Trade time:5:16PM EDT Value change:▲27.86 (0.57%)

    In The Wires

    Copyright © 2013 TradersHuddle.com. All Rights Reserved.