Series 9:Shooting Star

Infosys (INFY) has been in a strong uptrend, with prices steadily climbing. On one particular day, the stock opened at ₹1992 and surged during the session, reaching a high of ₹2040. However, sellers stepped in aggressively as the day progressed, reversing the earlier gains. By the end of the session, Infosys closed at ₹2005, just above its opening level.

The result is a candlestick pattern known as a Shooting Star, defined by a small real body near the bottom of the candle and a prominent long upper shadow. Note that if the close were under the open, it would be a bearish Shooting Star.

The long upper shadow reflects the bulls’ failed attempt to sustain the upward momentum, signalling a weakening trend. The inability to maintain higher levels indicates that sellers have begun to dominate, potentially signalling the start of a bearish reversal.

Similar concepts:

Technical Analysis | OHLCV | Line Chart | Bar Chart | Candlesticks | Trend Analysis | Candlestick Patterns | Hammer Candle sticks

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