New York, May 18th (TradersHuddle.com) - Shares of Frontier Oil Corporation (NYSE:FTO) ended the trading session flat by $0 or 0% from its previous close. Frontier Oil's price action formed what is considered to be a bullish engulfing candle that could very well signal continuation of trend or reversal on ongoing weakness.
Frontier Oil Corporation (NYSE:FTO) is anindependent oil refining and marketing company. It conducts crude oil refining in the Rocky Mountain region of the United States, with refineries in Wyoming and Kansas . The Company sells refined products to a variety of independent retailers, jobbers, and major oil companies.
Frontier Oil's recent stock range has been formed by a trough where calculated support was defined at $26.50 and by a peak that established the resistance level at $29.75, which could be used by traders planning their trades.
Traders wanting to establish a position in Frontier Oil or traders that are already holding the stock can use the bullish engulfing pattern to their advantage. The pattern provides a defined risk as it shows where the bears were able to push the stock down, before the bulls stepped in.
The bullish engulfing pattern is a leading indicator that provides an alert to the bulls that the trend will continue or that there is an immediate reversal to the short term weakness seen on the stock. Below an Engulfing Bullish Candle Illustration:
