The Company: Bharat Petrolium Company Limited,
Chart type : Candlestick
Exhaustion GAP happens in a trending period when it loses its strength signifying weakening demand/supply. Enclosed chart displays one such exhaustion gap. Its behaviours are explained below:
· It is seen initially the trends are in upward direction reflecting continued strength of demand.
· It may be seen on the date of exhaustion gap, the opening price started with a new high (489.0) with Gap-up. But instead of moving further upward, unexpectedly it loses it strength due to weak demand or exhausting its strength. This has resulted in pulling down the price and thus Bears taking control. The impact of Bearish strength is so much that it has surpassed previous two days’ open price signalling further downward movement.
· The downward trend continued even after next successive trades indicating opportunity for trade.
