Question

When a bearish engulfing bar pattern occurs in an uptrend, we can anticipate a ______________ because buyers are not still _______________ the market, and sellers are trying to push the market to go ______.

A) Reversal, dominating, higher
B) Continuation, influencing, lower
C) Pullback, controlling, higher
D) Consolidation, dictating, lower

Answer 1

A bearish engulfing bar pattern in an uptrend suggests a potential reversal as sellers are overcoming buyers, indicating the market may move lower. The correct answer is A) Reversal, dominating, lower.

Step-by-step explanation:

When a bearish engulfing bar pattern occurs in an uptrend, we can anticipate a reversal, because buyers are not still dominating the market, and sellers are trying to push the market to go lower. The correct answer is A) Reversal, dominating, lower.

A bearish engulfing pattern suggests that the sellers have overtaken the buyers and may indicate the beginning of a downward trend. This technical analysis concept is used to predict potential changes in market direction. Bull and bear markets represent upward and downward market trends, respectively. Examples of bull markets include the period when the DJIA reached 12,000 in 2000 and stood at 17,500 at the time of the knowledge cutoff date. Bear markets are the opposite, such as the one in 1998 when the market lost 1200 points from its highest value of 9,000.