Hi
You must have often heard that a resistance once taken out could act as a potential support level. Let us see through this chart how this happens.
Firstly there is a strong resistance zone on the left bottom of the chart, which is also 2019 high. Price took a knee jerk reaction from that level. Many traders would have bought near the highs in a bull market but...
The analysis is on how to create a low risk high reward trade with RSI being a key indicator,together with previous broken resistance line now acting as a support.
If the price slope of the stock is negative (bearish) and the RSI slope is positive (bullish) it is an indication (RSI BULLISH DIVERGENCE) of the reversal in the price of the stock.With the previous...
