Inverted Hammer candlestick pattern

In technical analysis, the Inverted Hammer candlestick pattern is the reverse of the Hammer pattern. The pattern has one candle. The open, close, and low are near the low of the pattern.

The Inverted Hammer And Shooting Star Candlestick Pattern

The above chart shows the Inverted Hammer and Shooting Star Candlestick pattern.

An Inverted Hammer pattern forms when the buyers push the stock price higher against the sellers. However, the stock retraces and closes near the open. The pattern reflects buying interest for technical, psychological, or fundamental reasons. When the pattern forms in a downtrend, it suggests a possible market bottom or change in trend. So, it’s one of the reversal patterns.

Shooting Star candlestick pattern

A Shooting Star candlestick pattern has one candle. It looks like a shooting star. The open, close, and low are near the low of the candlestick.

The Shooting Star candlestick pattern forms when buyers push the price higher against the sellers. However, the stock falls and closes near the low. The pattern reflects selling interest for psychological or fundamental reasons. When the pattern forms in an uptrend, it suggests a possible market top or change in trend. So, it’s a reversal candlestick pattern.

These patterns are used for trend identification. The Inverted Hammer pattern is used as an entry point. The Shooting Star pattern is used as an exit point. It’s advisable to use combination of patterns and indicators to determine your trading strategy.

Key stocks with these candlestick patterns

Recently, we’ve seen the Inverted Hammer pattern in Ares Commercial Real Estate Corporation (ACRE), Cleveland BioLabs (CBLI), and ChemoCentryx (CCXI). In contrast, Chipotle Mexican Grill (CMG) and Apartment Investment and Management Company (AIV) are showing the Shooting Star candlestick pattern.

Latest articles

Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.

The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.

Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.

Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.

14 Jun

IEA Again Slashes Its Oil Demand Growth Estimate

WRITTEN BY Rabindra Samanta

As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.

Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.