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Possible Bullish Inside Day Candle Pattern Detected for Covanta (NYSE:CVA)

By Amy Schwartz

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Covanta (NYSE:CVA) based on the price action in the company's shares. Today's price range of $14.79 and $14.90 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 Covanta may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

Covanta Holding Corporation conducts operations in waste disposal, energy services, and specialty insurance. The Company also owns and operates waste-to-energy and power generation projects. Covanta's waste-to-energy facilities convert municipal solid waste into renewable energy for communities primarily in the United States.

Potential upside of 37.7% exists for Covanta, based on a current level of $14.81 and analysts' average consensus price target of $20.40. The stock should find initial resistance at its 50-day moving average (MA) of $16.26 and further resistance at its 200-day MA of $16.65.

Covanta share prices have moved between a 52-week high of $22.85 and a 52-week low of $12.48 and are now trading 19% above that low price at $14.81 per share. Over the last five market days, the 200-day moving average (MA) has gone down 0.6% while the 50-day MA has advanced 1.5%.

SmarTrend recommended that its subscribers protect gains by selling shares of Covanta on June 27th, 2016 by issuing a Downtrend alert when the shares were trading at $15.80. Since that call, shares of Covanta have fallen 6.5%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: bullish inside day candle covanta

Ticker(s): CVA