Shares of Green Mountain Coffee GMCR ended the trading session lower by $1.71 or -3.35% from its previous close despite Williams Capital initiated coverage on the stock with a Perform and a target price of $50.
Green Mountain saw weakness amid concern over additional competition on reports that Wal-Mart and Esio could team up to offer a single serve product. Green Mountain’s price action formed what is considered to be a bearish engulfing candlestick chart pattern.
The stock’s current stock range is defined by calculated support defined at $47.43 and by the resistance level at $53.80, which should be used by traders planning their moves.
Traders wanting to establish a position in Green Mountain or traders that are already holding the stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current price action. The Bearish engulfing pattern is a leading warning sign for a trend reversal to occur.
Green Mountain GMCR is recognized for its award-winning coffees, innovative brewing technology and socially responsible business practices. The Company maintains two business units: the Specialty Coffee Business Unit, which includes the Green Mountain Coffee® and Tully’s Coffee® brands, and the Keurig Business Unit. The Specialty Coffee business unit produces coffee, tea and hot cocoa from its family of brands, including Tully’s Coffee®, Green Mountain Coffee® and Newman’s Own® Organics coffee.
The Keurig business unit is a pioneer and leading manufacturer of gourmet single-cup brewing systems and markets its premium patented single-cup brewing systems for consumers at home and away-from-home. K-Cup® portion packs for Keurig® Single-Cup Brewers are produced by a variety of licensed brands, including Green Mountain Coffee and Tully’s Coffee.
The bearish engulfing pattern is a leading indicator that provides an alert to traders that the current trend is about to reverse.
Below an Engulfing Bearish Candle Illustration:
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