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

By Nick Russo

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 $65.41 and $65.53 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 $65.57 and is now at $65.43, 85% 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 (NYSE:RAI) is currently priced 8.7% above its average consensus analyst price target of $59.74. The stock should discover initial support at its 50-day moving average (MA) of $50.13 and subsequent support at its 200-day MA of $46.54.

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.

SmarTrend recommended that subscribers consider buying shares of Reynolds American on October 21st, 2016 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $54.89. Since that recommendation, shares of Reynolds American have risen 19.4%. We continue to monitor RAI for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: bearish inside day candle Reynolds American

Ticker(s): RAI