Dark cloud covering markets? What you must know about this chart pattern

A fundamental change in a company’s outlook or a reversal in the overall market mood may have a meaningful bearing on the way a particular stock behaves in the market. Technically, any reversal in an uptrend is known as a ‘bearish reversal trend’, which indicates that the trend may reverse and the price may start falling.

While technical analysts read different bearish reversal candlestick patterns to gauge any scrip’s trajectory, one of the patterns is a ‘Dark Cloud Cover’. This pattern indicates a negative sentiment in the stock which, if met with follow-up selling, can aggravate the negative sentiment further.