New York, November 1st (TradersHuddle.com) - Shares of Canadian Natural Resources Ltd. (NYSE:CNQ) ended the trading session higher by $0.4 or 1.13% from its previous close. Canadian Natural'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.
Canadian Natural Resources Ltd. (NYSE:CNQ) is an independent crude oil and natural gas exploration, development and production company headquartered in Calgary, Alberta. Operations are focused in western Canada, the North Sea and offshore West Africa.
Canadian Natural's recent stock range has been formed by a trough where calculated support was defined at $34.64 and by a peak that established the resistance level at $37.98, which could be used by traders planning their trades.
Traders wanting to establish a position in Canadian Natural 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:
