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Possible Bearish Inside Day Candle Pattern Detected for Magna International (NYSE:MGA)

By Shiri Gupta

SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in Magna International (NYSE:MGA) based on the price action in the company's shares. Today's price range of $41.40 and $41.84 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 Magna International may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

Over the past year, Magna International has traded in a range of $30.41 to $59.42 and is now at $41.46, 36% above that low. In the last five trading sessions, the 50-day moving average (MA) has climbed 1.2% while the 200-day MA has slid 0.6%.

Magna International (NYSE:MGA) has potential upside of 48.0% based on a current price of $41.46 and analysts' consensus price target of $61.33. Magna International shares should encounter resistance at the 200-day moving average (MA) of $44.11 and support at the 50-day MA of $41.36.

Magna International Inc. designs, develops, and manufactures automotive systems, assemblies and components, and engineers and assembles complete vehicles. The Company sells its products primarily to original equipment manufacturers.

SmarTrend recommended that subscribers consider buying shares of Magna International on July 14th, 2016 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $37.61. Since that recommendation, shares of Magna International have risen 11.8%. We continue to monitor MGA for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: bearish inside day candle Magna International

Ticker(s): MGA