A Bearish Engulfing candlestick pattern is formed

A Bearish Engulfing candlestick pattern is formed near the top of an uptrend when a strong bearish candle completely engulfs the previous bullish candle, indicating a shift in market sentiment from buyers to sellers. In the BSE chart, this pattern appeared near the ₹4,400 resistance zone, where buying momentum started weakening and sellers took control, triggering a significant correction. It signals potential trend reversal or the beginning of a bearish phase, especially when supported by strong selling volume and subsequent lower-high and lower-low formations. This pattern highlights how price rejection at higher levels can provide an early indication of increasing selling pressure.