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Possible Bullish Inside Day Candle Pattern Detected for Federal Signal (NYSE:FSS)

By Shiri Gupta

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Federal Signal (NYSE:FSS) based on the price action in the company's shares. Yesterday's price range of $12.40 and $12.58 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 Federal Signal may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

Federal Signal (NYSE:FSS) has potential upside of 59.4% based on a current price of $12.55 and analysts' consensus price target of $20.00. Federal Signal shares should first meet resistance at the 50-day moving average (MA) of $13.08 and find additional resistance at the 200-day MA of $14.42.

Federal Signal Corporation manufactures and supplies safety, signaling, and communications equipment. The Company's equipment includes fire rescue products, street sweeping and vacuum loader vehicles, parking control equipment, custom on-premise signage, carbide cutting tools, precision punches and dies, and plastic injection mold components.

Over the past year, Federal Signal has traded in a range of $11.16 to $17.23 and closed yesterday at $12.55, 12% above that low. The 200-day and 50-day moving averages have moved 0.27% lower and 1.22% lower over the past week, respectively.

SmarTrend recommended that its subscribers protect gains by selling shares of Federal Signal on January 8th, 2016 by issuing a Downtrend alert when the shares were trading at $14.37. Since that call, shares of Federal Signal have fallen 14.2%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: bullish am inside day candle federal signal

Ticker(s): FSS