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Possible Bearish Inside Day Candle Pattern Detected for Reynolds American (NYSE:RAI)

By Shiri Gupta

SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in Reynolds American (NYSE:RAI) based on the price action in the company's shares. Today's price range of $47.19 and $47.41 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 Reynolds American 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, Reynolds American has traded in a range of $35.39 to $54.48 and is now at $47.34, 34% above that low. In the last five trading sessions, the 50-day moving average (MA) has remained constant while the 200-day MA has risen 0.4%.

Reynolds American Inc., through its subsidiaries, manufactures tobacco and smokeless tobacco products. The Company's subsidiary sells its products in the United States and its territories.

Reynolds American has overhead space with shares priced $47.34, or 6.9% below the average consensus analyst price target of $50.88. The stock should find resistance at its 50-day moving average (MA) of $50.13, as well as support at its 200-day MA of $46.54.

SmarTrend is tracking the current trend status for Reynolds American and will alert subscribers who have RAI in their portfolio or watchlist when shares have changed trend direction.

Keywords: bearish inside day candle Reynolds American

Ticker(s): RAI