As seen JK Paper has formed positive reverse divergence, which gives us a good re-entry in the stock.
A positive reversal divergence is when price makes higher low but the RSI makes lower low, which implies that even though RSI is weakening and making a lower low but still price fails to break the previous low and makes a higher low, making it bullish. Positive reversal divergence appears in an uptrend and is more reliable than regular divergence because in this we trade in the direction of the prevailing trend.
It is also called hidden divergence but reverse divergence is better because it tells us that it is the opposite of regular divergence.
Expected Levels- 100,105
A positive reversal divergence is when price makes higher low but the RSI makes lower low, which implies that even though RSI is weakening and making a lower low but still price fails to break the previous low and makes a higher low, making it bullish. Positive reversal divergence appears in an uptrend and is more reliable than regular divergence because in this we trade in the direction of the prevailing trend.
It is also called hidden divergence but reverse divergence is better because it tells us that it is the opposite of regular divergence.
Expected Levels- 100,105