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Possible Bullish Inside Day Candle Pattern Detected for Office Depot (NYSE:ODP)

By Shiri Gupta

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Office Depot (NYSE:ODP) based on the price action in the company's shares. Today's price range of $3.16 and $3.27 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 Office Depot may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

Potential upside of 225.6% exists for Office Depot, based on a current level of $3.22 and analysts' average consensus price target of $10.48. The stock should run into initial resistance at its 50-day moving average (MA) of $6.27 and subsequent resistance at its 200-day MA of $6.51.

Office Depot, Inc. operates a chain of office product warehouse stores in North America, Europe, Asia and Central America. The Company sells branded merchandise and provides business services primarily to small and medium-sized businesses and the home office market.

Over the past year, Office Depot has traded in a range of $3.11 to $9.40 and is now at $3.22, 4% above that low. The 200-day and 50-day moving averages have moved 0.75% lower and 1.02% higher over the past week, respectively.

SmarTrend recommended that its subscribers protect gains by selling shares of Office Depot on April 20th, 2016 by issuing a Downtrend alert when the shares were trading at $6.44. Since that call, shares of Office Depot have fallen 51.2%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: bullish inside day candle Office Depot

Ticker(s): ODP