A Bullish Reversal Pattern for McDermott

New York, June 18th (TradersHuddle.com) - Shares of McDermott International, Inc. (NYSE:MDR) ended the trading session higher by $0.09 or 0.85% from its previous close. McDermott'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.

McDermott International, Inc. (NYSE:MDR) is a leading engineering, procurement, construction and installation company focused on executing complex offshore oil and gas projects worldwide. The company provides fully integrated services for upstream field developments, it delivers fixed and floating production facilities, pipelines and subsea systems from concept to commissioning. Customers include national and major energy companies.

McDermott's stock has been trading in a well defined range with calculated support at $10.12 and resistance at $10.96. This range can be used by traders to plan their next moves.

Traders wanting to establish a position in McDermott 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 McDermott, 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:

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