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

By Shiri Gupta

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 $26.40 and $27.13 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.

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 25.6% exists for Cathay General Bancorp, based on a current level of $27.01 and analysts' average consensus price target of $33.92. The stock should run into initial resistance at its 50-day moving average (MA) of $29.03 and subsequent resistance at its 200-day MA of $30.16.

In the past 52 weeks, Cathay General Bancorp share prices have been bracketed by a low of $25.62 and a high of $34.75 and closed yesterday at $27.01, 5% above that low price. Over the past week, the 200-day moving average (MA) has gone down 0.2% while the 50-day MA has advanced 0.8%.

SmarTrend recommended that its subscribers protect gains by selling shares of Cathay General Bancorp on May 4th, 2016 by issuing a Downtrend alert when the shares were trading at $29.60. Since that call, shares of Cathay General Bancorp have fallen 11.2%. 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 cathay general bancorp

Ticker(s): CATY