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Possible Bullish Inside Day Candle Pattern Detected for Cathay General Bancorp (NASDAQ:CATY)

By Nick Russo

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Cathay General Bancorp (NASDAQ:CATY) based on the price action in the company's shares. Yesterday's price range of $30.28 and $30.67 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 Cathay General Bancorp may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

In the past 52 weeks, shares of Cathay General Bancorp have traded between a low of $25.62 and a high of $34.75 and closed yesterday at $30.50, which is 19% above that low price. In the last five trading sessions, the 50-day moving average (MA) has climbed 0.8% while the 200-day MA has slid 0.2%.

Cathay General Bancorp is the holding company for Cathay Bank. The Bank accepts deposits and originates various loans, and offers trade financing, spot and forward contracts, internet banking, global investment services, and other services. Cathay Bank operates in California, New York, Texas, Washington, and Massachusetts.

Potential upside of 11.2% exists for Cathay General Bancorp, based on a current level of $30.50 and analysts' average consensus price target of $33.92. The stock should find initial support at its 200-day moving average (MA) of $30.16 and further support at its 50-day MA of $29.03.

SmarTrend recommended that subscribers consider buying shares of Cathay General Bancorp on July 12th, 2016 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $29.49. Since that recommendation, shares of Cathay General Bancorp have risen 3.4%. We continue to monitor CATY for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: bullish am inside day candle cathay general bancorp

Ticker(s): CATY