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Possible Bearish Inside Day Candle Pattern Detected for Layne Christensen (NASDAQ:LAYN)

By Amy Schwartz

SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in Layne Christensen (NASDAQ:LAYN) based on the price action in the company's shares. Yesterday's price range of $8.65 and $8.98 is within the prior day'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 Layne Christensen may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

Layne Christensen Company provides water well drilling, mineral exploration drilling, geotechnical construction, oil and gas services, and related products and services. The company's customers include municipalities, industrial, oil, gas, and mining companies, and consulting and engineering firms located in the United States, Canada, Mexico, Australia, Africa, and South America.

Based on a current price of $8.68, Layne Christensen is currently 25.1% above its average consensus analyst price target of $6.50. The stock should discover initial support at its 50-day moving average (MA) of $7.44 and subsequent support at its 200-day MA of $6.52.

In the past 52 weeks, Layne Christensen share prices have been bracketed by a low of $3.75 and a high of $10.51 and closed yesterday at $8.68, 131% above that low price. In the last five trading sessions, the 50-day moving average (MA) has climbed 3.2% while the 200-day MA has remained constant.

SmarTrend recommended that subscribers consider buying shares of Layne Christensen on January 4th, 2016 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $5.26. Since that recommendation, shares of Layne Christensen have risen 72.4%. We continue to monitor LAYN for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: bearish am inside day candle layne christensen

Ticker(s): LAYN