Three Stocks That Formed a Tweezer Top Candlestick Pattern
By Traders Huddle Staff
The share prices for Halliburton (NYSE: HAL), 3M (NYSE: MMM), Williams Sonoma (NYSE: WSM), Riverbed (NASDAQ: RVBD), and Exide (NASDAQ: XIDE) ended the day making a Tweezer Top Candlestick formation as prices fell on the second day of the two-day candlestick pattern.
Tweezer Tops are identified using an algorithm which searches for the specific characteristics of this two-day reversal pattern.
Three Featured Stocks That Formed a Tweezer Top Candlestick Pattern
The market in Halliburton's stock formed a Tweezer Top Candlestick pattern as of today's close. Current news stories regarding this stock include:
The stock closed near the unchanged line in the session, yesterday, the company said that it expects to reduce approximately 35% of the workers at job sites through the end of the year, as Halliburton continues with its cost cutting program.
Furthermore, the closing price of 3M also formed a Tweezer Top pattern at the close of today's trading session. Some recent news headlines about this stock are:
3M (NYSE: MMM) closed also unchanged in the session after it announced that the Company's Chief Operating Officer would take over for George Buckley as Chief Executive. Mr. Thulin, a long time 3M executive will assume the CEO role on February 24th.
The share price of Williams Sonoma also formed a Tweezer Top candlestick pattern by the end of trading today. The latest news reports concerning this stock follow:
Just last month, Jefferies initiated coverage on Williams Sonoma with a Buy and Raymond James upgraded its rating to a Strong Buy. The high end retailer has fell 4% so far this year.
More Stocks That Formed Tweezer Top Candlestick Patterns
How a Tweezer Top Candlestick Pattern Works
The way this type of two-day reversal candlestick pattern works is a bullish white candlestick is observed on the first day, when the price of the stock continues trading higher throughout the session before ending the day at or near the day's high.
This is followed by a bearish black candlestick on the second day, when the market opens at or near the previous day's close and then declines, erasing all or nearly all of the previous day's gains. The resulting two-day candlestick pattern results in a Tweezer Top reversal pattern being formed on the stock's Japanese Candlestick chart.
Nevertheless, caution should be exercised in trading this type of candlestick pattern. According to some analysts, a Tweezer Top formation has more than a 50 percent probability of being seen before an upside breakout, making it wise to have a well-placed buy stop order entered in the event that this occurs.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.