Divergence
#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.
Gbp V/s U.S DollarIt's a perfect chart to understand about negetive and positive divergence. When price go up and rsi go down its call negetive divergence (indicate by blue line in chart) after that price will go down & if price go down and rsi go up its call positive divergence (indicate by red line in chart) after that price will go up.
Essel Pack Bullish Bias Target 260Bullish Bias
RSI Divergence
Looks Positive
Can be Bought at CMP levels
Immediate target 260/265 Previous Gap may act as resistance
Stop loss 220/215