NIFTY- Negative Reverse Divergence, Resistance at 50 sma- Sell
Updated
As seen, Nifty has been consolidating in a rectangular channel facing resistance at at 50 SMA in the daily chart.
Also, there is negative reverse divergence. 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.
Expecting a move towards the lower band of the channel.
Expected Levels- 8140, 8100, 8060
Exit- above high of today's candle- 8220.
I would be bullish only on the break of the top of the channel on closing basis for near term target of 8500, which would be a double bottom pattern breakout.
Also, there is negative reverse divergence. 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.
Expecting a move towards the lower band of the channel.
Expected Levels- 8140, 8100, 8060
Exit- above high of today's candle- 8220.
I would be bullish only on the break of the top of the channel on closing basis for near term target of 8500, which would be a double bottom pattern breakout.
Trade closed: stop reached
sl trigerred.
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