Bullish Candlestick Acting As New Support

Sometimes a strong bullish move upward resulting in a large bullish candlestick can be overdone, having moved too far too fast and becoming overbought. However, there are times when this large bullish candlestick can act as support for these retreating prices. The chart above of the Gold ETF (GLD) shows two instances of the opening of the large bullish candlestick acting as price support over time. As was taught previously, a large bullish candlestick is created when prices reach a level where bulls feel confident buying and bears are either not willing or are incapable of pushing prices lower. When prices later reach that same price level, bulls feel confident once again to buy; therefore, confirming an area of support.