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Is this a Reversal Pattern for Northrop Grumman ?

Shares of Northrop Grumman Corporation (NYSE:NOC) ended Friday's trading session higher by $0.58 or 1.04% from its previous close. Northrop's price action in today's session formed what is considered to be a Hammer, where bears drove prices lower intraday. However, the strong finish indicates that bulls regained control forming a trend reversal.

Northrop Grumman Corporation (NYSE:NOC) is a global defense company. The Company provides systems, products, and solutions in aerospace, electronics, information systems, shipbuilding and technical services to government and commercial customers worldwide.

Northrop's stock has been trading in a well defined range with support at $53.5 and resistance at $63.06, this range is also being used by traders to plan their positions.

Traders wanting to establish a position in Northrop Grumman or traders that are already holding the stock can use the hammer formation to their advantage, since the pattern signal a potential bullish trend reversal.

Hammers are important candlesticks as they mark bottoms and support levels. Further buying pressure, and preferably on expanding volume, is needed before acting, as heavy volume will serve to confirm the validity of the reversal.

In the case of Northrop Grumman, traders who want to add to their positions or start a new position, need to watch for confirmation of the reversal.

Gap - Bulls Taking Control?

Shares of Gap, Inc. (NYSE:GPS) ended Friday's trading session higher by $0.44 or 2.26% from its previous close. Gap'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.

The Gap, Inc. (NYSE:GPS) is an international specialty retailer operating retail and outlet stores. The Company sells casual apparel, accessories and personal care products for men, women, and children, through retail stores like The Gap and Banana Republic.

Gap's recent stock range has been formed by a trough where calculated support was defined at $19.40 and by a peak that established the resistance level at $22.25, which could be used by traders planning their trades.

Traders wanting to establish a position in Gap 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.

Netflix Close to Support

Shares of Netflix Inc. (NASDAQ:NFLX) traded very close to calculated support at $114.02 with price action on Thursday's session closing at just $115.25. The close places the stock price near levels where traders will start paying attention.

Netflix Inc. (NASDAQ:NLFX) is an online movie rental service. The company delivers its rentals by regular mail, using DVDs, or by its internet streaming service.

Netflix's current stock range is defined by current calculated support defined at $114.02 and by the resistance level at $127.96, which should be used by traders planning their trades.

Traders wanting to establish a position should place close attention to Netflix's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $127.96 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.

Bullish Reversal Pattern - Avis Budget Group

Shares of Avis Budget Group, Inc. (NYSE:CAR) ended Thursday's trading session higher by $0.06 or 0.52% from its previous close. Avis Budget Group's price action in the session formed what is considered to be a Hammer, where bears drove prices lower intraday. However, the strong finish indicates that bulls regained control forming a trend reversal.

Avis Budget Group, Inc. (NYSE:CAR) provides car and truck rentals to businesses and consumers around the world. The company supplies rental cars to the premium commercial and leisure segments of the travel industry under the Avis brand name; and to the price-conscious segments of the industry under the Budget brand name.

Avis Budget Group's stock has been trading in a well defined range with support at $9.79 and resistance at $11.93, this range is also being used by traders to plan their positions.

Traders wanting to establish a position in Avis Budget Group or traders that are already holding the stock can usecan use the hammer formation to their advantage, since the pattern signal a potential bullish trend reversal.

UAL Short Term Bullish Reversal

Shares of UAL Corporation (NASDAQ:UAUA) ended Friday's trading session higher by $0.83 or 3.78% from its previous close. UAL'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.

UAL Corporation (NASDAQ:UAUA), through its subsidiaries, offers air transportation services. The company, through its subsidiary, United Air Lines, Inc., provides transportation of persons, property, and mail in the United States and internationally. The company is based in Chicago and is member of the Star Alliance.

UAL's recent stock range has been formed by a trough where calculated support was defined at $19.61 and by a peak that established the resistance level at $22.55, which could be used by traders planning their trades.

Traders wanting to establish a position in UAL 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.

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