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Divergence

BHEL - Inverted Head & Shoulders + DivergenceAn Inverted Head and Shoulders pattern broke out and retested itself inside a bigger Inverted Head and Shoulders Pattern. The same move is expected on the bigger pattern as well. ***** Please support the effort & if you feel it deserving, do appreciate it with a Like and following me would only add on to the motivation. I believe in keeping the chart simple for easy interpretation. Kindly express any disagreement & improvements so that we learn & earn together. Always keep a stop loss to rescue you out of troubles and trail the stop loss as the price rises.
NSE:BHELLong
by CannySunny
17
Nifty Futures SentimentCan the premium or discount in Index Futures tell us anything about upcoming market moves? Generally, when discount widens, the bearish mood of the market is increasing. When premium widens, the bullish mood of the market is increasing. However, sometimes premium may also fall due to: 1. When FII’s are long on the markets, they short Nifty futures as a hedge. Nifty Futures are less volatile than individual stocks. If the stocks move up, the loss in the futures will be relatively less. This selling results in a huge discount on the Nifty Futures. 2. Another reason for Discount happens during result season when Companies declare dividends, Index stocks go ex-dividend and it leads to discount in Nifty. In the below chart, I ran a 20-day Simple moving average (yellow line) of (Nifty Futures Price – Nifty Spot Price) and a 9-period EMA (aqua line) of the moving average itself. Observations: 1. A downward crossover is near to a short-term bottom in the market (during bull markets). 2. This also means, traders are not outright bullish on markets when a bottom is formed and participate later on. 3. Markets ended with 5.8 premium on 20th April. 4. This could mean we are near a bottom unless we are in a big bear market like March 2020. Disclaimer: This is only for educational purposes and should not be considered as investment/trading advice.
NSE:NIFTY
by Shivam_Gaba
3
NIFTY METALS - Pullback or Correction ?While many TV analysts are still pretty bullish on the steel sector due to global factors on steel, I believe we could witness a small/medium correction in the days to come although the overall picture is still very bullish. I see long Bearish Divergence. I have broken down the major divergence into smaller blocks and as seen in the chart every time a bearish divergence was formed there was a correction. It also happens along the top border of the Parallel Channel and this time we have reached the top yet again. There is also a possibility where the stocks in the index keep galloping this weak which would then nullify the divergence thus breaking above the channel but chances seem a lil less, let's see.
NSE:CNXMETALShort
by CannySunny