Published on 25 Feb 2022 on MarketWatch
‘Bullish engulfing’ chart patterns abound after stock market’s big bounce
The U-turn the stock market took following Russia’s invasion of Ukraine, which flipped a sharp selloff into a broad rally, has produced multiple bullish reversal patterns that suggest the worst of the recent weakness may have passed for many stocks, and perhaps the broader market.
A “,” which is one of the more well-known and recognizable candlestick chart patterns, suggests momentum may have swung in favor of the bulls. When the pattern appears at the low of a recent trend, it suggests that trend may have just ended.