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Possible Bullish Inside Day Candle Pattern Detected for TransCanada (NYSE:TRP)

By Nick Russo

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in TransCanada (NYSE:TRP) based on the price action in the company's shares. Yesterday's price range of $40.08 and $40.60 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 TransCanada 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 2.8% exists for TransCanada, based on a current level of $40.14 and analysts' average consensus price target of $41.28. TransCanada shares have support at the 50-day moving average (MA) of $38.35 and additional support at the 200-day MA of $34.94.

In the past 52 weeks, TransCanada share prices have been bracketed by a low of $28.40 and a high of $46.87 and closed yesterday at $40.14, 41% above that low price. Over the last five market days, the 200-day moving average (MA) has remained constant while the 50-day MA has advanced 0.6%.

TransCanada Corporation is the parent company of TransCanada PipeLines Limited. The Company is focused on natural gas transmission and power services. TransCanada's network of pipeline transports the majority of Western Canada's natural gas production to markets in Canada and the United States. The Company also has interests in power plants in Canada and the United States.

SmarTrend recommended that subscribers consider buying shares of TransCanada on January 26th, 2016 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $33.31. Since that recommendation, shares of TransCanada have risen 20.2%. We continue to monitor TRP for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: bullish am inside day candle transcanada

Ticker(s): TRP