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Divergence

When was the last time Nifty closed negative? … 🤔 last year10 days done now for the bulls as benchmark Nifty50 posts a series of positive daily closes. For two consecutive days we’ve seen the index bounce back from intra-day weakness with momentum hitting back to a new life high. Our red rising channel on the 75min chart is intact, but there are signs of negative price-momentum divergence. Yes, they have failed miserably throughout this rally, but they’ll tend to work and reverse the trend exactly when you will discount it & neglect. Just like the way we value people more when they leave us and go, either physically or mentally. With that emotional note, let’s continue to stay strategically positive on the market. Trade Well. Trade Wise.
NSE:NIFTY1!
by Abhijit_Paul
Nifty: 14K Tease is On7th consecutive positive daily close from the benchmark Nifty to end the year in style. In fact, this is probably the best transformation of all time, considering the way the index was back in Feb-Mar’20 - a complete turnaround. Now for psychological pleasure, the index has met the 14K mark and slipped down marginally. The rising channel on the 75min chart is very much kicking in resistances with a distinct price momentum divergence. Yeah right … so will the index correct? Well, a break below 13,950 can indeed lead to a test of 13,800. Let’s see. Trade Well. Trade Wise.
NSE:NIFTY1!
by Abhijit_Paul
Price-Volume DivergenceMy take on price and volume divergence. Ideally, the price should move higher with an increase in volume, which shows that more buyers are pushing the price higher and this is a perfect scenario for the price to continuously rise higher. But, when the price continues moving higher while volume is drying, it shows that buyers aren't interested to push the prices higher. This scenario makes it easier for sellers to step in and increase the supply to drag the prices lower. Such analysis should be supported by price analysis to improve the probability. Also, the news would be a great catalyst. Currently, EURUSD has rallied continuously for quite long and a correction might take place. This post is for educational purposes. If you have any query, comment below and I will respond to it. Also, if you liked my analysis then simply click the like button Thank you and grateful for every one of you! Wishing everyone a happy new year as well as a profitable trading year!
Education
by inteliigentrader
Nifty 30 Dec'20: Bond … Nifty BondBenchmark Nifty is in a “never say die” attitude as the index bounces back from the intra-day low of 13,870 in today’s session to post the sixth consecutive positive daily session. As mentioned yesterday, the index is still very much within the rising channel in the 75min chart with 14,000 as the immediate but-obvious target. Intermediate price-momentum divergences are shaping up, but we’ve seen enough of these getting clobbered over the past few weeks. Strategically stay cautious and enjoy the end of 2020. Trade Well. Trade Wise.
NSE:NIFTY1!
by Abhijit_Paul
NIFTY50- Expecting some Correction Again?Last week on Monday, the fall that we saw was on account of a stock exchange glitch. However, in the same week the whole loss was nullified leaving evryone at sea. But now if I go by what the chart is telling me, it says the chart pattern formed is a Rising Wedge Pattern. There is also a Bearish Divergence along with the ADX losing steam. Now , either tomorrow the price breaksout and then starts taking support of the channel border or if it breaks down then I see a correction atleast till the red dashed lines. A fall below those levels could trigger a bigger fall. Let's be a little cautious before blindly breaking the bank.
NSE:NIFTY
by CannySunny
2
BALAJI AMINESParallel Channel Travel 2 Divergences spotted. Price is at decisive point - Will it rise back inside the Channel? - Will it fall below the Channel? Ans: Most probably , it will rise back inside the Channel to touch the top. Lets see ! ***** Help Me to Help Us. Always keep a stop loss to rescue you out of troubles. I believe in keeping the chart simple with minimal drawings & easy to interpret. So kindly express any disagreement & improvements so that we learn & earn together. Please support the effort and appreciate it with a Like if you felt it deserves it and Following me would only add on to the motivation.
NSE:BALAMINESLong
by CannySunny
HUDCOHopeful Breakout on 8th attempt. Divergence Spotted There are chances of price falling back in the Wedge. ***** Help Me to Help Us. Always keep a stop loss to rescue you out of troubles. I believe in keeping the chart simple with minimal drawings & easy to interpret. So kindly express any disagreement & improvements so that we learn & earn together. Please support the effort and appreciate it with a Like if you felt it deserves it and Following me would only add on to the motivation.
NSE:HUDCOLong
by CannySunny
#LETSTALKABOUTMARKETS - JSW STEELThe stock has rallied almost 33% in the last 2 months, there needs to be a correction or consolidation phase. One needs to be cautious not to enter long at this point as technical indicators suggest a short set up. 1. RSI negative divergence - The price is increasing at a very fast pace but the strength index is not following the path as indicated in the chart. 2. Bollinger Bands - The stock should close below the Bollinger band and might drift towards the average line. One can take a short set up with a strict Sl at 333 with a target of 300. This is purely for educational purposes.
NSE:JSWSTEELShort
by je_sh