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 $8.05 and $8.17 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 (NYSE:GGB) has potential upside of 18.1% based on a current price of $8.07 and analysts' consensus price target of $9.53. Gerdau shares have support at the 200-day moving average (MA) of $7.38 and additional support at the 50-day MA of $7.31.
Over the past year, Gerdau has traded in a range of $5.27 to $9.68 and is now at $8.07, 53% above that low. Over the past week, the 200-day moving average (MA) has gone down 0.3% while the 50-day MA has advanced 2.1%.
SmarTrend recommended that subscribers consider buying shares of Gerdau on July 18th, 2013 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $6.20. Since that recommendation, shares of Gerdau have risen 32.0%. We continue to monitor GGB for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.
Keywords: bearish inside day candle gerdau