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Home > Blog > About the shooting star formation and the importance of this candle

About the shooting star formation and the importance of this candleBack

A shooting star is a reversal candlestick patterns, which is form at the higher level.
It form after a strong bull trend, the atmosphere is bullish. The price opens and trades higher. In the first session bulls are in control. But in the second half of the day, the bears step in and take the price back down to the lower end of the trading range, creating a small body for the day. This could indicate that the bulls still have control. However, the long upper shadow represents that sellers had started stepping in at these levels. Even though the bulls may have been able to keep the price positive by the end of the day, the evidence of the selling was apparent. A lower open or a black candle the next day reinforces the fact that selling is going on.

In MCX Silver December contract closed at 36077 changed by 145 points up. Silver rallied nicely in evening session on Friday but failed to hold gains and 36600 and selling pressure occurred near key resistance of 36800 and settled with a shooting star candlestick formation. Today support will be at 35855 any failure of this level will put current positivity in doubts and this metal may retest to 35500- 35300 before moving further upside. Areas of 35000 are expected to remain key support and any closing below this level will put current rally in doubts. Resistance is now seen near 36700-800 zones if sustained above then rally possible otherwise according to shooing star it will fall if close in red after the shooting star formation.
In the bigger chart silver trading range for the week is expected among the key support at 32000 and resistance at 43500.