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Possible Bullish Inside Day Candle Pattern Detected for Corrections of America (NYSE:CXW)

By Amy Schwartz

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Corrections of America (NYSE:CXW) based on the price action in the company's shares. Today's price range of $28.71 and $28.98 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 Corrections of America may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

There is potential upside of 20.0% for shares of Corrections of America based on a current price of $28.90 and an average consensus analyst price target of $34.67. The stock should find initial resistance at its 200-day moving average (MA) of $29.46 and further resistance at its 50-day MA of $31.13.

Over the past year, Corrections of America has traded in a range of $24.21 to $36.98 and is now at $28.90, 19% above that low. Over the last five market days, the 200-day moving average (MA) has gone down 0.2% while the 50-day MA has advanced 0.8%.

Corrections Corporation of America provides detention and corrections services to governmental agencies. The Company owns correctional and detention facilities in the United States and the United Kingdom. Services include design, construction, ownership, renovation, and management of new or existing jails and prisons, as well as long distance inmate transportation services.

SmarTrend recommended that its subscribers protect gains by selling shares of Corrections of America on July 7th, 2016 by issuing a Downtrend alert when the shares were trading at $32.94. Since that call, shares of Corrections of America have fallen 13.0%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: bullish inside day candle corrections of america

Ticker(s): CXW