Bullish pro-gap stocks: These stocks are under the radar of top professional traders; dont miss out!

Technical analysis is a great way to decipher market trends. High-quality technical analysis gives market participants a bird's eye view of market trends that can prove to be very beneficial in the short run. However, performing technical analysis is not an easy task. This is because there are so many types of charts to process and even more chart patterns. Needless to say, no charter can follow all chart types and bet on all chart patterns to make consistent money in the market. Focussing on the expertise of a particular charting technique is the key to success in technical analysis.   

Candlestick charting techniques are one of the most popular methods adopted by chartists. One of the most important reasons for the popularity of candlestick charting is the pictorial representations of stock prices and the way the market information is displayed; so that, traders can use maximum information to his or her advantage. Originated in Japan for over 100 years, candlestick charts are easy to read and are one of the oldest studies in technical analysis. Candlestick charts capture not only the link between the price and the supply & demand but also, the emotions of traders.   

In this article, stocks are selected based on the formation of a bullish pro gap, which is quite a different one from the normal gap (refer to charts). A pro gap is a gap said to be created by professionals. A bullish pro gap is a two-candle pattern wherein, the first candle is a red candle, which is followed by a green candle that opens within the red real body and closes over prior open.    

Interpretation of a bullish pro gap: The surprisingly high opening of the second day (green candle) after a strong selling session may initially be of little concern. However, when the green candle closes on a strong note, the bear perceives the threat and gives the bulls an optimistic view.     

So, here is the list of stocks that have formed a bullish pro gap on December 23, 2021. Keep these stocks on your watchlist: 

1. Britannia Industries
2. Colgate Palmolive (India)
3. Indian Oil Corporation (IOC)
4. Lux Industries
5. Sharda Cropchem
6. Mastek