Filed Under: ,
Tickers in this Article: JDSU
New York, October 2nd (TradersHuddle.com) - Shares of JDS Uniphase Corporation (NASDAQ:JDSU) ended the trading session lower by $0.38 or -3.07% from its previous close. JDS Uniphase's 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.

JDS Uniphase Corporation (NASDAQ:JDSU) provides communications test and measurement solutions and optical products for telecommunications service providers, cable operators, and network equipment manufacturers. The Company also provides optical solutions for medical/environmental instrumentation, semiconductor processing, display, brand authentication, aerospace and defense.

Traders looking for an entry in JDS Uniphase 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:

{loadposition googlink}

comments powered by Disqus

Trading Center