Company: Bharat Heavy Electricals Limited, a Heavy Electrical machinery manufacturer and also undertakes turnkey power projects.
Chart Type: Candlestick
Any breakout gap which is not filled signifies the strength of directional trend in the direction of gap occurs and continues its movement. Alternatively, it starts new trend breaking away from its current trend pattern. One such chart is enclosed for view. Its behaviour can be described as below:
· It may be seen from the chart that the downward trend turns upward with the support of high volume implying strong demand. This is confirmed by successive high volume supporting the trend.
· However, may be due to sudden intervention of strong hand or certain development in the market, during next trading session, price dropped down creating gap between previous closing price and opening price of new session. This has caused ‘Gap-down’ and successive trade sessions confirms heavy selling pressure with low demand. Even subsequent trades could not fill the Gap and remained unfilled for a long period.
