Explanation:
The main direction of the market is bearish, characterized by downtrend. Then the market opens with a sharp sell off which means the continuation of the downtrend. However, prices turned up sharply, sales declined and quickly bullish mood continues throughout the day with a closing price at or near its high for the day which causes the long lower shadow. Obviously the market fails to continue in the sales side. This observation reduces the previous bearish sentiment caused by short traders to feel more uneasier with bearish positions.
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