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

By Nick Russo

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. Yesterday's price range of $28.06 and $28.58 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. 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 has overhead space with shares priced $28.42, or 42.3% 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.

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.

In the past 52 weeks, shares of BorgWarner have traded between a low of $27.52 and a high of $62.32 and closed yesterday at $28.42, which is 3% above that low price. The 200-day and 50-day moving averages have moved 0.86% lower and 0.56% higher over the past week, respectively.

SmarTrend recommended that its subscribers protect gains by selling shares of BorgWarner on May 4th, 2016 by issuing a Downtrend alert when the shares were trading at $34.94. Since that call, shares of BorgWarner have fallen 20.7%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: bullish am inside day candle BorgWarner

Ticker(s): BWA