New York, November 1st (TradersHuddle.com) - Shares of Ingersoll-Rand Plc (NYSE:IR) ended the trading
session higher by $0.72 or 1.55% from its previous close. Ingersoll-Rand'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.
Ingersoll-Rand Plc (NYSE:IR) is a diversified, global company that provides a diverse range of products and services for a wide range of industries. The Dublin, Ireland based company offers air conditioning systems and services, climate control technologies, industrial technologies and security technologies.
Ingersoll-Rand's recent stock range was formed by a trough where calculated support was defined at $43.85 and by a peak that established the resistance level at $47.64. This range could be used by traders managing their positions.
Traders wanting to establish a position in Ingersoll-Rand 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: