Maruti has formed a bearish engulfing candle on the daily chart today, which is a strong reversal signal when it appears after a rally. This pattern suggests that sellers have overpowered buyers.
⚖️ Importance of Confirmation
A bearish engulfing pattern requires a confirmation candle (a red follow-through candle on the next day) to validate the setup.
We’ve seen this before: on 4th September, Maruti also formed a bearish engulfing, but on 5th September, the follow-up candle was missing, which invalidated the bearish setup at that time.
Hence, waiting for tomorrow’s confirmation is crucial to avoid a false signal.
✅ Key Levels & Targets
If we get the confirmation candle tomorrow, then downside levels of ₹14,600 → ₹13,600 → ₹12,900 could unfold in the short to medium term.
On the flip side, if no confirmation comes, the pattern may fail just like in early September, and the stock could remain range-bound or resume upward momentum.
⚖️ Importance of Confirmation
A bearish engulfing pattern requires a confirmation candle (a red follow-through candle on the next day) to validate the setup.
We’ve seen this before: on 4th September, Maruti also formed a bearish engulfing, but on 5th September, the follow-up candle was missing, which invalidated the bearish setup at that time.
Hence, waiting for tomorrow’s confirmation is crucial to avoid a false signal.
✅ Key Levels & Targets
If we get the confirmation candle tomorrow, then downside levels of ₹14,600 → ₹13,600 → ₹12,900 could unfold in the short to medium term.
On the flip side, if no confirmation comes, the pattern may fail just like in early September, and the stock could remain range-bound or resume upward momentum.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.