Possible Bearish Inside Day Candle Pattern Detected for Gerdau (NYSE:GGB)
SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in Gerdau (NYSE:GGB) based on the price action in the company's shares. Today's price range of $7.66 and $7.74 is within yesterday's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Owners of Gerdau may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.
Gerdau S.A. manufactures steel. The Company produces crude, long, specialty, rolled, and drawn steel products. Gerdau manufactures its steel primarily in mini-mills. The Company operates in Brazil, Uruguay, Chile, Argentina, Canada, and the United States.
Gerdau has overhead space with shares priced $7.68, or 20.9% below the average consensus analyst price target of $9.72. Gerdau shares should first meet resistance at the 50-day moving average (MA) of $8.35 and find additional resistance at the 200-day MA of $8.86.
In the past 52 weeks, Gerdau share prices have been bracketed by a low of $7.29 and a high of $10.82 and are now at $7.68, 5% above that low price. Over the past week, the 200-day moving average (MA) has remained constant while the 50-day MA has declined 1.1%.
SmarTrend recommended that its subscribers protect gains by selling shares of Gerdau on February 20th, 2013 by issuing a Downtrend alert when the shares were trading at $8.21. Since that call, shares of Gerdau have fallen 5.4%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.
Keywords: bearish inside day candle gerdau