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Divergence

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
Nifty InstaView 10 Mar’21: Stuck    
Nifty View: Nifty continues to extend the recent bounce back with slow and steady up days. Today’s trading session was marked with intraday volatility which resulted in no follow through buying post the positive gap up opening for the index. A closer look at the 15min chart of the index shows clear existence of short term resistance and support. On the upside, the index faces resistance from (15,200-15,235) and on the downside, strong short term support comes in at (15,100-15,150). The index needs to break beyond either of these bands to find follow through directional movement. There is an intermediate negative divergence too with RSI9 - just to keep you posted.                       
Thank you for following my work and please feel free to share your thoughts and suggestions.  
Trade Well. Trade Wise.   
NSE:NIFTY1!
by Abhijit_Paul
1
Oscillate The Right Way: RevisitedFor all the basic stuff that I am using in this post, you will have to visit the following idea. This post is in continuation of SBI weekly divergence study.. Abbv. used: Overbought -- OB Oversold -- OS Divergence -- Div A-- OB B-- Div after OB at A C-- Double top and Div Multi week correction back to support D-- OS at support and very sharp rally due to news E-- OB in the same news candle Multiweek correction back to support F-- OS and Div at support Multiweek rally to previous highs G-- OB H-- Div Price still rallied and made new highs Later a very sharp fall back to support I-- OS J-- Div at support Price rallied sharply to the high of point E K-- OB L-- Div At L we have similar condition as we had at E. These conditions may pull the price back to the high of E at around 350 to find some support. Some observations: # Div not always lead to an immediate fall. Once it is OB/OS conditions, one may have to look for div trades on lower timeframes like daily. # One should not force trades and let the price take its course of action and reveal hands (eg at H) # Price action at lower timeframes should be given equal importance. # Div after OB/OS conditions works great. # Sharp rallies which take old highs in just one or two weeks plus OB conditions means caution. Same is true for sharp falls. # Div trades look very simple in the hindsight but as per my experience they are not that easy to trade in the live market. I hope this will add to your knowledge. Regards JJSingh
NSE:SBIN
by Bravetotrade
4
Mentorship InstaView: Channel Border Protected … so far Nifty View: The range of resistance within (15,200-15,300) proves itself in today’s session. Benchmark Nifty with many sectoral indices did slip ⛷quite a bit from their respective intra-day highs. Do not consider this as a trend reversal yet, as the underlying trend of the index is very much UP ⬆️ and intact. Intermediate divergence is prevailing between price and momentum and based on that we can expect some consolidation and slow down. 14,900 acts as the immediate support for the index, a slip below which can see a test of (14,600-14,800). Strategically I will not suggest to go outright bearish 🐻 right now and see off at least the first leg of fall. On the other hand, looking for long opportunities at lower levels and close to supports will be much better off. Thank you for following my work and please feel free to share your thoughts and suggestions. Trade Well. Trade Wise.
NSE:NIFTY1!
by Abhijit_Paul
Nifty 04 Feb’21: Fractal Divergences Thanks to banking stocks and especially SBIN, the benchmark Nifty posts fourth consecutive positive daily close. Targets/ resistances from one of the rising channel's upper border at 14,900 is now taken care and if this kind of momentum continues then we should be headed towards (15,200-15,300). But there is a little element of caution we should pay attention to. A negative price-momentum divergence on the daily and 75min chart of Nifty at the current juncture. Such divergences generally indicate some consolidation or slow down going ahead and not necessarily a reversal. Considering the momentum with which we had this rally, I sense that the index will face some profit taking/ consolidation on the last trading session of the week. Thank you for following my work and please feel free to share your thoughts and suggestions. Trade Well. Trade Wise.
NSE:NIFTY1!
by Abhijit_Paul