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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 $40.55 and $40.95 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.

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.

In the past 52 weeks, Magna International share prices have been bracketed by a low of $30.41 and a high of $59.42 and are now at $40.80, 34% above that low price. 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 50.3% based on a current price of $40.80 and analysts' consensus price target of $61.33. The stock should run into initial resistance at its 50-day moving average (MA) of $41.36 and subsequent resistance at its 200-day MA of $44.11.

SmarTrend recommended that subscribers consider buying shares of Magna International on February 26th, 2016 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $38.15. Since that recommendation, shares of Magna International have risen 7.4%. 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