We can clearly see the price struggling to breakout of the Weekly Levels. In the Daily, we can see a Negative Divergence with RSI (orange line) followed by Double Red Inside Bar. If today, the price breaks below the yesterday's range, we can expect quick down move.
BPCL chart showing high volume selling today, RSI tanked below 60.
If stock breaks 375 with volumes, more pain to be witnessed. If a bounce is witnessed after touching 373-375, might zoom above more.
Levels mentioned in chart.
Do your research before taking trading decision.
This example is bets suited for RSI hidden divergence.
We all know double bottom or double top RSi divergence to identify trend reversals.
But with the help of Hidden divergence we can find out trend continuation.
Lets start !!
- On 18 April stock is traded 411 and RSI shows the 51.29 reading .
- But it break the support level and fall further.
- it again...
Apollo Tyres on a weekly chart has taken support at levels of 192-193 and has bounce back giving a divergence on the RSI from a oversold region. The MACD also is showing convergence. A major part of the move has already taken place from 193 to 220.
What needs to be seen is as to how far would this upward move go with Fibonacci retracements placed at 224.5, 235...
We are seeing a divergence on the RSI and a negative weekly close when the market made a high could indicate starting of long unwinding. Hence it would be wise to be with the market, book the profits and wait for a dip to re enter.
Here I used EMA , KAMA & RSI.
at a 1450 level, a very strong resistance is there.
We can see the RSI & chart pattern is complementing each other very well.
it looks like the bullish trend is very strong so it can take some time to reverse.
Nifty as per the analysis in the chart could be near a major reversal zone around 11900-11930. Most indicators are overbought and we can also see divergence in RSI. Advise traders and investors to stay cautious and trade with appropriate SL on all long trades. Chances of this happening in early September is very high.
Price broke out of EMA 50 and also crossed last swing high of the down trend.
After breaking out price is in pullback mode which formed long tailed pin bar.
By looking at the pin it is seen that price is taking support on EMA 50.
MACD also confirms up trend as it has crossed zero line.
Looks like it is end of down trend.
Price broke out of EMA 50, after giving breakout it is in pullback mode.
Looks like it has formed inside bar after breaking out of EMA 50.
MACD also confirms up trend as it is facing up and crossed zero line.
Risk Reward ratio would 1:2.