The Marubozu Candle: The Bulls' Ultimate Weapon

In Japanese, marubozu means "dominance".

And when you look at supply and demand in the stock market, nothing screams dominance quite like a marubozu candle. A bullish marubozu candle opens at or very near the low of the day and closes at or very near the high of the day. It's simply a day of unrelenting buying and is much more powerful when accompanied by exceptionally-high volume. Many times we'll see these types of candles form with heavy volume after a big announcement like quarterly earnings results. Fiserv, Inc. (FISV) was one stock with such an announcement on Tuesday morning. Check out the stock market reaction:

Enter Fiserv, Inc. (FISV):

FISV reported revenues that exceeded Wall Street consensus estimates, while EPS simply met expectations. However, FISV raised its EPS range for FY2023 and investors poured into the stock. Tuesday's opening price of 109.25 should serve as excellent price support during any period of extended selling. Volume on Tuesday was 7.78 million shares, more than 2 1/2 times the normal daily average of 3.02 million. It's also worth noting that software stocks ($DJUSSW) have finally begun to show leadership. FISV has been a leading stock within this space. It certainly shouldn't hurt now that money is rotating into the group as a whole.

Happy Trading! Tom Bowley Chief Market Strategist EarningsBeats.com Better Timing. Better Trades.