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Possible Bearish Inside Day Candle Pattern Detected for TransAlta (NYSE:TAC)

By David Diaz

SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in TransAlta (NYSE:TAC) based on the price action in the company's shares. Yesterday's price range of $5.18 and $5.31 is within the prior day'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 TransAlta 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, TransAlta has traded in a range of $2.54 to $9.98 and closed yesterday at $5.24, 106% above that low. Over the last five market days, the 200-day moving average (MA) has gone down 0.9% while the 50-day MA has advanced 1.4%.

TransAlta Corporation is a non-regulated electric generation and marketing company with its growth focused in developing coal and gas-fired generation. The Company is currently focused on Australia, Canada, the United States, and Mexico.

TransAlta has overhead space with shares priced $5.24, or 16.8% below the average consensus analyst price target of $6.30. The stock should discover initial support at its 50-day moving average (MA) of $4.68 and subsequent support at its 200-day MA of $4.48.

SmarTrend recommended that subscribers consider buying shares of TransAlta on February 1st, 2016 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $3.48. Since that recommendation, shares of TransAlta have risen 52.9%. We continue to monitor TAC for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: bearish am inside day candle transalta

Ticker(s): TAC