What is Bearish Engulfing?
Bearish engulfing is one of the candlestick chart pattern. It is exactly opposite of Bullish Engulfing. Bearish engulfing is representation of Bullish trend reversal. It can be found in daily, weekly and monthly charts.Technical Interpretation
It consists of two candlesticks. The first one will have a green candle body the second one will have red candle body. The red real body of the second candle will completely cover the first candle's real body. Buyers were dominating stock for a quite sometime, but on the second day of the Bearish Engulfing buyers were came in and dominated the day. It is consider as change in the trend from buyers/bullish to sellers/bearish.
Technical Consideration
The stock can be consider as more bearish if the volume on second candle is better than previous day's volume. It will be realizable if there are any Resistance line(s).The lows of Bearish Engulfing candle lines will act as resistance for the bearish trend. The resistance line will also act as stop lose for the short positions.