The stock is retesting the down-trending trendline and is also retesting the 89-day (low) band. The 89-day (high-low) band is one of the most reliable moving average technique, although there is no documentation about it. The stock has rallied approx. 20%-25% from its recent lows.
positive divergence in indicator june to mid august
pls check
raunaq
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@anupminj7, hi, I believe divergences are misleading in strong trends. Notice the force by which the stock tanked in the last week of May and first week of August. There are many other confirming and bigger factors to look at (trendline, moving average etc). Also the move after positive divergence gave a return of 20%-25% which is huge. In conclusion i think the importance of divergence is over and we should look at other factors which could give us a better view. Please correct me if I am wrong. I will always have a open and a broad mind for learning!
Happy trading!
anupminj7
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@raunaq, yes
third wave divergence is still pending which will lead to 491
it will be the right place to buy
raunaq
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@anupminj7, good insight! any option strategy in mind?
pls check