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Possible Bearish Inside Day Candle Pattern Detected for MBIA (NYSE:MBI)

By Amy Schwartz

SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in MBIA (NYSE:MBI) based on the price action in the company's shares. Today's price range of $8.11 and $8.22 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 MBIA may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

MBIA Inc. provides financial guarantee insurance and other forms of credit protection. The Company also offers investment management services to public finance and structured finance issuers, investors and capital market participants.

MBIA has overhead space with shares priced $8.12, or 44.0% below the average consensus analyst price target of $14.50. MBIA shares should encounter resistance at the 50-day moving average (MA) of $8.32 and support at its 200-day MA of $7.04.

In the past 52 weeks, shares of MBIA have traded between a low of $4.94 and a high of $11.65 and are now at $8.12, which is 64% above that low price. Over the last five market days, the 200-day moving average (MA) has gone up 0.5% while the 50-day MA has advanced 1.2%.

SmarTrend recommended that its subscribers protect gains by selling shares of MBIA on February 8th, 2017 by issuing a Downtrend alert when the shares were trading at $10.25. Since that call, shares of MBIA have fallen 19.7%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: bearish inside day candle mbia

Ticker(s): MBI