Possible Bearish Inside Day Candle Pattern Detected for Corrections of America (NYSE:CXW)

Published on Tue, 11/27/2012 - 08:27
By Peter Chu in Candlestick, CXW, bearish am inside day candle, corrections of america, nyse:cxw

Analyzing the price chart for Corrections of America (NYSE:CXW) has revealed a potential bearish inside day candle pattern. Yesterday's price range of $33.53 and $34.04 is within the prior day's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Owners of Corrections of America may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

Corrections Corporation of America provides detention and corrections services to governmental agencies. The Company owns correctional and detention facilities in the United States and the United Kingdom. Services include design, construction, ownership, renovation, and management of new or existing jails and prisons, as well as long distance inmate transportation services.

There is potential upside of 19.0% for shares of Corrections of America based on a current price of $33.95 and an average consensus analyst price target of $40.40. Corrections of America shares have support at the 50-day moving average (MA) of $33.69 and additional support at the 200-day MA of $29.01.

Corrections of America share prices have moved between a 52-week high of $35.73 and a 52-week low of $20.16 and closed yesterday at 68% above that low price at $33.95 per share. In the last five trading sessions, the 50-day moving average (MA) has climbed 0.4% while the 200-day MA has risen 0.6%.

By Peter Chu
pchu@fnno.com

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