New York, November 27th (TradersHuddle.com) - Shares of Navistar International Corporation (NYSE:NAV) ended the trading
session higher by $0.06 or 0.3% from its previous close. Navistar'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.
Navistar International Corporation (NYSE:NAV) manufactures and markets medium and heavy trucks, school buses, mid-range diesel engines, and service parts.
Navistar's recent stock range was formed by a trough where calculated support was defined at $19.24 and by a peak that established the resistance level at $21.00. This range could be used by traders managing their positions.
Traders wanting to establish a position in Navistar 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: