psumita108

CoalIndia- divergences in Price action and MACD lines.

Long
NSE:COALINDIA   COAL INDIA LTD
Divergences are caused when the price action deflects in different direction than the direction it should be moving in. Monthly charts are the best and one of the most reliable chart system to know the direction of the herd psychology. monthly charts shows that the price action is bearish while the MACD lines are saying the complete different story. Divergence doesn't allows means that there is going to be a reversal but there are other factors to that we have to consider while trading in any script. MA's (11 and 22) distance has already narrowed and about to cross which is going to confirm the big move before the sentiments changes for this script. You need to wait and have this script under your observation so you don't miss out on big move because this script has been in the bearish traps from past two years.

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