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Possible Bullish Inside Day Candle Pattern Detected for BorgWarner (NYSE:BWA)

By Shiri Gupta

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in BorgWarner (NYSE:BWA) based on the price action in the company's shares. Today's price range of $34.64 and $34.95 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. Traders and investors interested in shares of BorgWarner may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

BorgWarner share prices have moved between a 52-week high of $62.32 and a 52-week low of $27.52 and are now trading 26% above that low price at $34.76 per share. In the last five trading sessions, the 50-day moving average (MA) has climbed 0.6% while the 200-day MA has slid 0.9%.

BorgWarner, Inc. supplies engineered systems and components, primarily for automotive powertrain applications. The Company's products are manufactured and sold worldwide, primarily to original equipment manufacturers of passenger cars, sport utility vehicles, and light trucks. BorgWarner operates manufacturing facilities in North America, Europe, and Asia.

BorgWarner has overhead space with shares priced $34.76, or 29.5% below the average consensus analyst price target of $49.29. The stock should find initial resistance at its 50-day moving average (MA) of $36.19 and further resistance at its 200-day MA of $39.79.

SmarTrend recommended that subscribers consider buying shares of BorgWarner on July 18th, 2016 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $31.99. Since that recommendation, shares of BorgWarner have risen 8.0%. We continue to monitor BWA for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: bullish inside day candle BorgWarner

Ticker(s): BWA