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Possible Bullish Inside Day Candle Pattern Detected for Ericsson (NASDAQ:ERIC)

By Shiri Gupta

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Ericsson (NASDAQ:ERIC) based on the price action in the company's shares. Today's price range of $7.52 and $7.59 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 Ericsson may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

Ericsson (NASDAQ:ERIC) has potential upside of 53.8% based on a current price of $7.57 and analysts' consensus price target of $11.65. Ericsson shares should first meet resistance at the 50-day moving average (MA) of $9.30 and find additional resistance at the 200-day MA of $9.56.

Over the past year, Ericsson has traded in a range of $7.46 to $13.14 and is now at $7.57, 1% above that low. In the last five trading sessions, the 50-day moving average (MA) has fallen 1.2% while the 200-day MA has slid 0.6%.

Telefonaktiebolaget LM Ericsson develops and manufactures products for wired and mobile communications in public and private networks. The Company produces mobile telephones through its Sony Ericsson joint venture. Ericsson manufactures and installs wired and wireless communications systems, wireless microwave links, call center equipment, microelectronics, and radar systems.

SmarTrend recommended that its subscribers protect gains by selling shares of Ericsson on April 21st, 2016 by issuing a Downtrend alert when the shares were trading at $8.41. Since that call, shares of Ericsson have fallen 10.9%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: bullish inside day candle Ericsson

Ticker(s): ERIC