RSI Bullish Divergence & contraction of volatility
Updated
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.
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.
Note
Today HDFC rallied up to 7.75%Note
Another 7% Rally37% Delivery looks a bit speculative. Partial profit booking should be done.
Trade closed: target reached
First Target reached.Now focus on channel
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