EMP’s Harami

EMP has shown its first red candlestick and a Bearish Harami pattern. This pattern consists of a green body and a red body that is completely inside the range of the white body.

The Bearish Harami is a sign of disparity in the stocks’s health. The stock is characterized by an uptrend and a bullish mood, and there is heavy buying indicated by a green body, which further supports the bullishness. However, the next day prices open lower of the preceding day and stay in a small range throughout the day, closing even lower, but still within the previous day’s body. Traders are now concerned about the strength of the stock, due to this suddenly deteriorating trend.

Harami’s are not really a strong reversal pattern so one may wait for a confirmation by way of a gap down or a large red candlestick the following day.


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