Bottom Fishing Anixter

Bottom Fishing Anixter: New York, December 21st (TradersHuddle.com) - Shares of Anixter International Inc. (NYSE:AXE) ended the trading session higher by $0.13 or 0.22% from its previous close. Anixter'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.

Anixter International Inc. (NYSE:AXE) distributes communications and specialty wire and cable products around the world. The Company distributes wiring systems for voice, data, and video networks and electrical power applications in North America, Europe, Asia, and Latin America.

Anixter's stock has been trading in a well defined range with support at $55.54 and resistance at $59.18, this range is also being used by traders to plan their positions.

Traders wanting to establish a position in Anixter 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 Anixter, traders who want to add to their positions or start a new position, need to watch for confirmation of the reversal. Below a Hammer illustration:

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