Infosys-Descending Channel+Negative Reverse Divergenc-Sell Setup
Updated
As seen in Infosys, the price is moving in a descending channel forming lower highs and lower lows, indicating down trend in the daily charts .
Lately, the price has resisted the upper channel and .5 Fibonacci retracement of the last swing is acting as resistance.
Also, there is negative reverse divergence making it all the more bearish.
Therefore, expecting the price to move towards the lower band in the coming days.
Negative Reverse Divergence is when price makes lower high and RSI makes higher high, which implies that even though RSI is strengthening and making a higher high , price fails to break its previous high and forms a lower high, making it bearish. Negative Reverse divergence is seen during retracements in a downtrend, and gives us a good entry in the direction of the trend.
Lately, the price has resisted the upper channel and .5 Fibonacci retracement of the last swing is acting as resistance.
Also, there is negative reverse divergence making it all the more bearish.
Therefore, expecting the price to move towards the lower band in the coming days.
Negative Reverse Divergence is when price makes lower high and RSI makes higher high, which implies that even though RSI is strengthening and making a higher high , price fails to break its previous high and forms a lower high, making it bearish. Negative Reverse divergence is seen during retracements in a downtrend, and gives us a good entry in the direction of the trend.
Trade closed: stop reached
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