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Possible Bullish Inside Day Candle Pattern Detected for FreightCar America (NASDAQ:RAIL)

By James Quinn

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in FreightCar America (NASDAQ:RAIL) based on the price action in the company's shares. Yesterday's price range of $10.91 and $11.29 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 FreightCar 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.

FreightCar America share prices have moved between a 52-week high of $37.48 and a 52-week low of $10.87 and closed yesterday at 2% above that low price at $11.06 per share. Over the past week, the 200-day moving average (MA) has gone down 0.6% while the 50-day MA has declined 1.1%.

FreightCar America Inc. designs and manufactures aluminum and steel bodied railroad freight cars. The Company also refurbishes and sells replacement parts for railcars. FreightCar America's primary customers are leasing companies, utilities and railroads.

FreightCar America (NASDAQ:RAIL) has potential upside of 117.0% based on a current price of $11.06 and analysts' consensus price target of $24.00. The stock should run into initial resistance at its 50-day moving average (MA) of $15.72 and subsequent resistance at its 200-day MA of $18.96.

SmarTrend recommended that its subscribers protect gains by selling shares of FreightCar America on May 3rd, 2016 by issuing a Downtrend alert when the shares were trading at $15.00. Since that call, shares of FreightCar America have fallen 27.3%. 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 freightcar america

Ticker(s): RAIL