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financialmarketsalgorithms
Apr 8, 2017 6:04 PM

Nifty- Bearish Negative Divergence indicating break of 9100. Short

Nifty 50 IndexNSE

Description

Bears may be ready to push the index down below 9000 in the coming weeks. Stop @ 9285.
Comments
neneram
Stop is ok , still 85 point's from current price is high(75x85 = 6375 per lot of nifty) .

Is divergence the only reason for sell or any other reason ? and how much weightage should be given to divergence ?
financialmarketsalgorithms
@neneram, Divergence is an important in anticipating potential tops and indicates that uptrend is under threat. Since we are using 2 hour charts here, this is only a short term sell signal. A risk of 1% stop loss for a potential of 2-3%.
neneram
@financialmarketsalgorithms,

l you have mentioned that "Bears ready to push market below 9000 in coming weeks " and you have given a 2 hr chart , and now you are saying short term signal( for 200 points correction ?)

Can you be clear about it ?
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