New York, November 5th (TradersHuddle.com) - Shares of Aetna, Inc. (NYSE:AET) ended the trading
session lower by $0.46 or -1.03% from its previous close. Aetna'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.
Aetna Inc. (NYSE:AET) operates as a diversified health care benefits company that provides healthcare and related benefits. The Company offers medical, pharmacy, dental, behavioral health, group life and disability plans, and medical management capabilities and health care management services for Medicaid plans.
Aetna's recent stock range was formed by a trough where calculated support was defined at $37.10 and by a peak that established the resistance level at $43.97. This range could be used by traders managing their positions.
Traders wanting to establish a position in Aetna 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: