Evening Star Formation in NIfty Will Bears take over again ????

By | October 5, 2009

Evening Star Formation

Implication of Evening Star:
The Evening Star Pattern is a bearish reversal pattern, usually occuring at the top of an uptrend. The pattern consists of three candlesticks:

* Large Bullish Candle (Day 1)
* Small Bullish or Bearish Candle (Day 2)
* Large Bearish Candle (Day 3)
The first part of an Evening Star reversal pattern is a large bullish green candle. On the first day, bulls are definitely in charge, usually new highs were made.

The second day begins with a bullish gap up. It is clear from the opening of Day 2 that bulls are in control. However, bulls do not push prices much higher. The candlestick on Day 2 is quite small and can be bullish, bearish, or neutral (i.e. Doji).

Generally speaking, a bearish candle on Day 2 is a stronger sign of an impending reversal. But it is Day 3 that is the most significant candlestick.

Day 3 begins with a gap down, (a bearish signal) and bears are able to press prices even further downward, often eliminating the gains seen on Day

If 4971.4 Breaks Targets 4939.6 4887.3

Pivot Level:5023.7

Resistance:5055.5 ,5107.8,5139.6

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