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Dark Cloud Cover

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Dark Cloud Cover
In candlestick charting, a bearish indicator in which a large black candle (representing a loss on the trading day) follows a large white candle (representing a gain on the previous trading day). The close of the current trading day must be about halfway between the opening and closing prices of the previous trading day. This is represented on the chart by drawing the bottom of the black candle next to the middle of the white candle. A dark cloud cover may represent the reversal of a previous bullish trend, and technical analysts look for confirmation in the following day's trading.


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A dark cloud cover in an uptrend is a bigger white body that is followed by a black body with a higher opening price than the white body; however, the black candle closes below the midpoint of the white body.
The last down leg marked by a Dark Cloud Cover candlestick pattern appears to be losing steam at the channel bottom and upward correction is possible from here to test the channel top, now at 96.
Technical positioning looks favorable of a return to downward momentum, however, with prices showing a Dark Cloud Cover bearish reversal candlestick pattern following a test of support-turned-resistance at a rising trend line established from the lows in January.
 
 
 
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