This pattern is also seen as a trend reversal.The Nifty50 opened at 8,628 and closed at 8,632, with a gain of just 3.45 points from its previous close. The index rose marginally to 8,642, which made a small upper shadow while it slipped to an intraday low of 8,580, forming a long lower shadow. "If the Nifty50 trades above 8,696 in the next two sessions, it can act as a confirmation and signal the end of correction. "It has to cross and hold above the 8,665 level to witness an upward move towards 8,700 and then 8,728 levels. On the downside, the 8,580 level is likely to act as a major support over the next 2-3 sessions," he said.

Source: Economic Times August 23, 2016 11:15 UTC