Final answer:
b) Bullish trend continuation. The first candle in the morning star pattern confirms a bullish trend continuation.
Step-by-step explanation:
The first candle in the morning star pattern confirms a bullish trend continuation. The morning star pattern is a three-candlestick pattern that occurs during a downtrend. The first candle is a large bearish candle, indicating the continuation of the existing downtrend.
However, it is the second candle that is crucial for the morning star pattern. It is a small candle with a gap down, representing indecision in the market. It shows that sellers are losing control.
The third candle in the pattern is a large bullish candle that opens within the body of the second candle. The fact that it opens higher indicates a potential reversal of the downtrend and the start of a new uptrend.