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Possible Bullish Inside Day Candle Pattern Detected for Domtar (NYSE:UFS)

By David Diaz

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Domtar (NYSE:UFS) based on the price action in the company's shares. Yesterday's price range of $37.76 and $38.23 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 Domtar may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

Domtar share prices have moved between a 52-week high of $45.77 and a 52-week low of $29.88 and closed yesterday at 26% above that low price at $37.77 per share. 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%.

Domtar Corporation produces uncoated freesheet paper. The Company manufactures business papers, commercial printing and publication papers, and technical and specialty papers. Domtar manages forestland in Canada and the United States, and produces lumber and other wood products.

Domtar has overhead space with shares priced $37.77, or 16.8% below the average consensus analyst price target of $45.39. The stock should run into initial resistance at its 200-day moving average (MA) of $37.88 and subsequent resistance at its 50-day MA of $38.45.

SmarTrend is tracking the current trend status for Domtar and will alert subscribers who have UFS in their portfolio or watchlist when shares have changed trend direction.

Keywords: bullish am inside day candle domtar

Ticker(s): UFS