With the market rising steadily from 1849.44 to 2277.35, it gained 23.24% in time span of 15 business days. The market reached a high of 2277.35 on January 10, 2023, and ended at 2190.42, making a bearish candle i.e., shooting star near the supply region where the market turned around on August 1, 2022. Market is in the supply zone right now, and profit booking is evident. We can watch for a reversal pattern (W Pattern) to assume a new position. As a support zone, the Fibonacci levels of 0.5 (2042.02) and 0.618 (1986.60) can be used.
Shooting Star
A shooting star candlestick is a bearish candlestick that occurs after an uptrend or in a supply zone and signals a market reversal. A shooting star implies that the market is under intense selling pressure. A candlestick formation must develop during an increase in order to be regarded as a shooting star. Additionally, the gap between the opening price and the highest price of the day must be greater than double the size of the shooting star. Under the genuine body, there shouldn't be little to no shadow.
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