Piercing pattern is two candlestick reversal pattern. The Bearish piercing pattern is witnessed in UPL on 05-Jul-2019.
The Conditions and Qualification of Bearish Piercing pattern:
1) The Prior trend should be bullish. – Yes. it is witnessed.
2) The second day’s Red candle body should cover the previous day’s HIGH. – Yes. It is evident from the chart.
3) Today’s body should cover at-least 50% mark of previous candle’s body. – Yes. It is witnessed.
4) The lower tail should be small in size. – Yes. It is also qualified.
The Trading plan: SHORT
Entry price: Rs.660.8 (Below the LOW of the second day. – Piercing day)
Stoploss: Rs.709 (HIGH of the piercing candle – second day)
Target price: Rs.612.6 (Considering the Risk to Reward of 1:1 ratio)
The result of the trade: Target Achieved in 13 Days.