The Bullish engulfing is a reversal pattern. It consists of Green real body that engulfs the previous red body during the down trend. The Bullish engulfing pattern witnessed in Amararaja Batteries Ltd. on 20-Jun-2019. The Conditions and qualification of the pattern are as explained below.
Conditions & Qualification of pattern:
1) The recent fall in price should be witnessed. – Yes. The prior trend is witnessed as bearish in this case.
2) The latest Bullish body should cover the previous day’s Bear body. – Yes. It is witnessed.
3) The slight increase in trading volume is expected during any of the last two days es.- Yes. The volume increase is noticed.
The trading plan: LONG
Entry price: Rs.614.15 (Above the highest point of engulfing day & previous day)
Stoploss: Rs.572.5 (The Lowest point of the engulfing day)
Target: Rs. 655.8 (Considering the Risk to reward of 1:1)
Result of the trade: Target achieved in 10 days.