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Possible Bullish Inside Day Candle Pattern Detected for Compass Diversified (NASDAQ:CODI)

By Nick Russo

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Compass Diversified (NASDAQ:CODI) based on the price action in the company's shares. Yesterday's price range of $17.47 and $17.64 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 Compass Diversified may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

Compass Diversified Holdings, through subsidiaries, offers a wide range of products and services. The Company's products and services include coating systems, manufacturing industrial drying and cooling equipment, upholstered stationary and motion furniture, medical support surfaces, patient positioning devices, printed circuit boards, promotional products, and staffing services.

Potential upside of 10.2% exists for Compass Diversified, based on a current level of $17.47 and analysts' average consensus price target of $19.25. The stock should discover initial support at its 200-day moving average (MA) of $15.82 and subsequent support at its 50-day MA of $15.42.

In the past 52 weeks, Compass Diversified share prices have been bracketed by a low of $9.70 and a high of $17.98 and closed yesterday at $17.47, 80% above that low price. The 200-day and 50-day moving averages have moved 0.12% lower and 0.76% higher over the past week, respectively.

SmarTrend recommended that subscribers consider buying shares of Compass Diversified on June 22nd, 2016 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $16.52. Since that recommendation, shares of Compass Diversified have risen 7.0%. We continue to monitor CODI for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: bullish am inside day candle compass diversified

Ticker(s): CODI