INVERTED HAMMER SIGNAL – POTENTIAL REVERSAL IN PLAY

A clear Inverted Hammer candlestick has formed after a sustained downtrend, suggesting that selling pressure may be losing strength and buyers are beginning to step in.

Key Interpretation:

The long upper wick shows strong rejection of lower prices.

The close near the opening price indicates buying interest is emerging.

This setup often acts as a bullish reversal signal when confirmed by a strong green candle in the following session.

Trading Implications:

Bullish Scenario: A bullish close in the next candle can confirm reversal potential, opening the path for short-term upside.

Bearish Risk: Without confirmation, price may continue sideways or resume its downtrend.

Market Outlook:

While the inverted hammer suggests the downtrend is weakening, confirmation is critical before entering a position. Traders should watch for volume increase and a breakout above the hammer’s high to validate bullish momentum.