RSI Bullish Divergence & contraction of volatility

Apr 23, 2020

In this setup, I have clearly explained how powerful RSI divergence is but sometimes they don't work is some kind of stocks.

In my own opinion, I think HDFC Follows RSI Divaregance & this move fill be a successful move.

Observation

Price Action

-> In the last 5 days narrow range candle has been formed. (Contraction of volatility)
-> Positive price channel formation.
-> RSI Shows good strength & supports price now. (Signifies that price is strong & no major trend reversal)
-> MACD is still below zero but it's still indicating a bullish move.
-> Rs 1860 should be the First target as per Fibonacci. /

Last three days Delivery %

21 April 2020: 59.86%
22 April 2020: 53.54%
23 April 2020: 46.19%


Option Chain ( Expiry 30 April 2020)

1700: Highest OI on Call side.
1600: Highest OI on Put side.

Apr 28, 2020

Note

Today HDFC rallied up to 7.75%

Apr 29, 2020

Note

Another 7% Rally

37% Delivery looks a bit speculative. Partial profit booking should be done.

Apr 30, 2020

Trade closed: target reached

First Target reached.

Now focus on channel