This is a reversal trend pattern. Here the piercing day is on 24-12-15. The corresponding volume is high. The body of the red candle covered the high of the previous day. Also it has covered more than 100% of the green candle. The entry price is at Rs 5.90. This is the lowest price of the green candle on 23-12-15. The stop loss is the highest of the red candle on 24-12-15 at Rs 6.30. The risk is between A to B which in money terms is Rs 0.40. So the target is entry at Rs 5.90 minus the risk of Rs 0.40 which equals to Rs 5.40.
GENUS PAPER AND BOARDS – BEARISH PIERCING PATTERN
