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