Shares of Baker Hughes Incorporated (NYSE:BHI) ended the trading session lower by $0.5 or -1.2% from its previous close. Baker Hughes' price action formed what is considered to be a bearish engulfing candlestick chart pattern.
Baker Hughes Incorporated (BHI) supply wellbore related products, and technology services and systems for drilling, formation evaluation, completion and production, and reservoir technology and consulting to the oil and natural gas industry worldwide. From the reservoir to the refinery the company creates value with high-performance products and services to analyze, drill, evaluate, complete and produce oil and gas reserves and then transport and refine the hydrocarbons.
Baker Hughes' current stock range is determined by calculated support defined at $40.03 and by the resistance level at $42.25, which should be used by traders planning their next move.
If traders want to establish a position in Baker Hughes, they need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal in the current price action. The Bearish engulfing pattern is a leading warning sign; therefore, traders should closely monitor Baker Hughes for indications of a trend reversal.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.