HDFC AMC has been in continuous downtrend from late 2019. As we can see on the chart, the stock has recently bounced from a support level with good volumes. The most interesting observation is a positive divergence in RSI during the bounce which might be an indication that stock has bottomed. On Friday, good buying with high volumes has been observed with a bullish candle, almost a marubozu. This stock has an immediate resistance at 1950 so it is better to buy the stock at around 1800-1810 levels for a better risk reward.
Kindly trade as per your own analysis. This idea is shared for educational purposes.
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Did not get an entry and hit 1950. Wait for a retracement for bigger move.
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Power of divergence. Never got entry in this but a learning of how strong RSI divergence is. Stock has almost doubled from 1800