INFY (Infosys Ltd)- Analysis Bullish Levels -if sustain above 1591 (early entry risky) then 1658 then 1725 then 1759 safe entry if sustain above this for 2 weeks) target can be around 1993 to 2060 if sustain above for a week or two then we expect more upside and wait for targets around 2227 to 2294 then 2462 to 2529 if sustains above for two weeks then hold for long term
Bearish levels :- if sustain below 1490 to 1457 to 1440 below this bearish then 1389 to 1366 or 1339 good support with SL of 1289 below this more bearish. Then 1139 to 1088 will be the last hope
**Consider some Points buffer in above levels
**Disclaimer -
I am not a SEBI registered analyst or advisor. I does not represent or endorse the accuracy or reliability of any information, conversation, or content. Stock trading is inherently risky and the users agree to assume complete and full responsibility for the outcomes of all trading decisions that they make, including but not limited to loss of capital. None of these communications should be construed as an offer to buy or sell securities, nor advice to do so. The users understands and acknowledges that there is a very high risk involved in trading securities. By using this information, the user agrees that use of this information is entirely at their own risk.
Thank you.
INFY trade ideas
INFY : 4H : Bearish View=============================
INFY
=============================
Daily TF
-------------
Elliot Impulse waves 1-2-3-4-5 is complete.
Correction wave A-B seems complete and C to start anytime Soon.
Bearish Divergences visible.
Breakdown of Support Trendline and Re-testing seems complete.
Huge Call Writing visible.
================================
Swing Trading - Stock Options - Setup CE/PE🔥 Stock Options Trading Strategy – Built on Core Swing/Positional Principles (85% Win Rate Setup)
As a continuation of my last post on Swing and Positional Trading Setup with 85% Win Rate, I’m now sharing a Stock Options Trading Concept that follows the same core principles but is tailored specifically for liquid stock options.
You’ve already been provided with a list of 100+ high-beta, liquid stocks. For this strategy, you will strictly focus only on those stocks.
✅ Strategy Setup
🔹 Timeframe Filters:
• Monthly RSI > 60 (RSI has crossed and is holding above 60)
• Weekly RSI > 60 (same condition as above)
• Daily RSI: RSI must be crossing 60 or on the verge of crossing
Now, on the Daily Chart, mark the current swing high and swing low.
📌 Two Entry Approaches:
Approach 1: Breakout Entry
• Entry: When swing high is broken.
• Stop Loss (SL): Swing low or previous week’s low.
Approach 2: Pullback Entry
• Wait for a retracement from swing high (should not exceed 50% retracement).
• Confirmation of pullback weakness: Volume bars should be shrinking/decreasing.
• Entry: On breakout of the last candle high of the pullback.
• Stop Loss: Swing low or previous week’s low.
Once in the trade, trail your stop loss to cost after 3 consecutive bullish candles.
📤 Exit Rules
• Exit the Stock Options position only if the Daily RSI drops below 60.
⚠️ Important Guidelines for Stock Options
• 💡 Trade with only 1 lot. Never exceed your lot size.
• 📅 Enter after 2 days of the monthly expiry and exit before 2 days of next monthly expiry to avoid smart money manipulation.
• 🎯 Choose strike prices in multiples of 25, 50, 75, or 100 for better liquidity.
• Example: If stock is at 1564, choose 1550 ITM or 1575 ATM.
• ⏱️ For quick exits, always place exit orders at round numbers like 5 or 10 levels.
• Example: If you entered at ₹70 and the option is at ₹144, place an exit at ₹140 or ₹145—not any random price.
For PE buying-
Monthly RSI < 40
Weekly RSI < 40
Daily RSi crossing 40 or below
Same process for PE with 2 approach as you like but in reverse form.
🧠 Final Thoughts
Stick to this simple, structured setup. Don’t complicate it.
✅ Backtest thoroughly
✅ Understand each setup
✅ Plan your trades BEFORE entering, never after.
Let the market come to you—don’t chase it.
Disclaimer -
These posts are only to educate you all. You are responsible for the actions you take. Consult your advisor if you need. I am a Sr. Research Analyst in Equity Firm BUT not yet SEBI reg.
High Beta Stock List for Options-
🚗 Auto
• Bajaj Auto
• Bosch Ltd
• Eicher Motors
• Hero Motocorp
• Maruti Suzuki
• TVS Motors
• Tata Motors
🏦 Banking & Financial Services
• Bank of Baroda
• Kotak Mahindra Bank
• Axis Bank
• ICICI Bank
• HDFC Bank
• IndusInd Bank
• Bajaj Finserv
• Bajaj Finance
• SBI
🧪 Chemicals
• Aarti Industries
• Atul Ltd
• Navin Fluorine
• UPL
• Tata Chemicals
🍫 FMCG
• Britannia Industries
• Godrej Consumer
• Tata Consumer
• DMart
• Hindustan Unilever
• Dabur
💊 Pharma & Healthcare
• Apollo Hospitals
• Alkem Labs
• Biocon
• Divis Labs
• Dr. Reddy’s
• IPCA Labs
• Laurus Labs
• Lupin
• Aurobindo Pharma
• Sun Pharma
• Cipla
💻 IT Sector
• HCL Technologies
• Infosys
• LTIMindtree
• TCS
• Tech Mahindra
• Wipro
⛓️ Steel & Metals
• APL Apollo Tubes
• JSW Steel
• Jindal Steel
• Tata Steel
• Hindalco
• L&T
🛢️ Oil & Gas
• Reliance Industries
• Gujarat Gas
• Indraprastha Gas (IGL)
• Mahanagar Gas (MGL)
• Tata Power
🏢 Realty
• DLF Ltd
• Godrej Properties
• Lodha (Macrotech Developers)
• Oberoi Realty
• Phoenix Mills
🛋️ Durables & Others
• Sona BLW (Sona Comstar)
• Amber Enterprises
• Bata India
• Crompton Greaves
• Dixon Technologies
• Titan Company
• ACC Cement
• Ambuja Cement
• Ultratech Cement
• Voltas Ltd
• Polycab India
• Mazagon Dock (Mazdock)
• Asian Paints
• Berger Paints
Cummins
Swing Trading Stock Options - High Momentum Strategy🔥 Stock Options Trading Strategy – Built on Core Swing/Positional Principles (85% Win Rate Setup) -
As a continuation of my last post on Swing and Positional Trading Setup with 85% Win Rate, I’m now sharing a Stock Options Trading Concept that follows the same core principles but is tailored specifically for liquid stock options.
You’ve already been provided with a list of 100+ high-beta, liquid stocks. For this strategy, you will strictly focus only on those stocks.
✅ Strategy Setup
🔹 Timeframe Filters:
• Monthly RSI > 60 (RSI has crossed and is holding above 60)
• Weekly RSI > 60 (same condition as above)
• Daily RSI: RSI must be crossing 60 or on the verge of crossing
Now, on the Daily Chart, mark the current swing high and swing low.
📌 Two Entry Approaches:
Approach 1: Breakout Entry
• Entry: When swing high is broken.
• Stop Loss (SL): Swing low or previous week’s low.
Approach 2: Pullback Entry
• Wait for a retracement from swing high (should not exceed 50% retracement).
• Confirmation of pullback weakness: Volume bars should be shrinking/decreasing.
• Entry: On breakout of the last candle high of the pullback.
• Stop Loss: Swing low or previous week’s low.
Once in the trade, trail your stop loss to cost after 3 consecutive bullish candles.
📤 Exit Rules
• Exit the Stock Options position only if the Daily RSI drops below 60.
⚠️ Important Guidelines for Stock Options
• 💡 Trade with only 1 lot. Never exceed your lot size.
• 📅 Enter after 2 days of the monthly expiry and exit before 2 days of next monthly expiry to avoid smart money manipulation.
• 🎯 Choose strike prices in multiples of 25, 50, 75, or 100 for better liquidity.
• Example: If stock is at 1564, choose 1550 ITM or 1575 ATM.
• ⏱️ For quick exits, always place exit orders at round numbers like 5 or 10 levels.
• Example: If you entered at ₹70 and the option is at ₹144, place an exit at ₹140 or ₹145—not any random price.
For PE buying-
Monthly RSI < 40
Weekly RSI < 40
Daily RSi crossing 40 or below
Same process for PE with 2 approach as you like but in reverse form.
🧠 Final Thoughts
Stick to this simple, structured setup. Don’t complicate it.
✅ Backtest thoroughly
✅ Understand each setup
✅ Plan your trades BEFORE entering, never after.
Let the market come to you—don’t chase it.
Disclaimer -
These posts are only to educate you all. You are responsible for the actions you take. Consult your advisor if you need. I am a Sr. Research Analyst in Equity Firm BUT not yet SEBI reg.
100+ Stocks List - High Beta -
🚗 Auto
• Bajaj Auto
• Bosch Ltd
• Eicher Motors
• Hero Motocorp
• Maruti Suzuki
• TVS Motors
• Tata Motors
🏦 Banking & Financial Services
• Bank of Baroda
• Kotak Mahindra Bank
• Axis Bank
• ICICI Bank
• HDFC Bank
• IndusInd Bank
• Bajaj Finserv
• Bajaj Finance
• SBI
🧪 Chemicals
• Aarti Industries
• Atul Ltd
• Navin Fluorine
• UPL
• Tata Chemicals
🍫 FMCG
• Britannia Industries
• Godrej Consumer
• Tata Consumer
• DMart
• Hindustan Unilever
• Dabur
💊 Pharma & Healthcare
• Apollo Hospitals
• Alkem Labs
• Biocon
• Divis Labs
• Dr. Reddy’s
• IPCA Labs
• Laurus Labs
• Lupin
• Aurobindo Pharma
• Sun Pharma
• Cipla
💻 IT Sector
• HCL Technologies
• Infosys
• LTIMindtree
• TCS
• Tech Mahindra
• Wipro
⛓️ Steel & Metals
• APL Apollo Tubes
• JSW Steel
• Jindal Steel
• Tata Steel
• Hindalco
• L&T
🛢️ Oil & Gas
• Reliance Industries
• Gujarat Gas
• Indraprastha Gas (IGL)
• Mahanagar Gas (MGL)
• Tata Power
🏢 Realty
• DLF Ltd
• Godrej Properties
• Lodha (Macrotech Developers)
• Oberoi Realty
• Phoenix Mills
🛋️ Durables & Others
• Sona BLW (Sona Comstar)
• Amber Enterprises
• Bata India
• Crompton Greaves
• Dixon Technologies
• Titan Company
• ACC Cement
• Ambuja Cement
• Ultratech Cement
• Voltas Ltd
• Polycab India
• Mazagon Dock (Mazdock)
• Asian Paints
• Berger Paints
Cummins
Best of luck. Comments if you have any doubts. God bless you all, be happy!
Faraaz T
Sr. Equity Research Analyst
Stockholm Securities - UK
Swing & Positional Trading Setup - 85% Win Rate✅ Set up for Positional and Swing Trades (High Beta Liquid Stocks for Cash and Options)-
This trading guide outlines a simple and effective setup for both positional and swing trades, focused on high beta, highly liquid stocks. Follow the rules strictly for better consistency and profitability.
🔹 Positional Trade Setup
• Open the Monthly Chart of the stock.
• Add the RSI (Relative Strength Index) indicator.
• Uncheck all levels (30, 50, 70) and only keep one level at 60.
• Edit the level from 70 to 60 and highlight it in green.
Entry Criteria:
• Stock must cross the 60 RSI level on the monthly chart.
• Entry is only triggered if the price breaks the previous month's high and 60 levels are broken in RSI.
Stop Loss:
• Place the initial stop loss below the previous month's low.
Trailing Stop Loss:
• Trail the stop loss to the current month’s low, but only after the monthly candle closes.
• Continue trailing the stop loss every month using this method until exit.
Exit Rule:
• Exit the positional trade only if the current month’s candle closes below the previous month’s low OR Exit also if the BigWick is formed below previous month low.
⚡ Note: The RSI 60+ setup is a powerful momentum strategy with high reward probability.
🔹 Swing Trade Setup
• Monthly RSI must cross above the 60 level.
• Switch to the Daily Chart of the stock.
• Identify the current swing high on the daily chart.
• Entry is triggered only when the stock breaks the swing high.
• Place the stop loss below the previous week low at first.
Trailing Stop Loss:
• If the trade moves in your favor, trail the stop loss to cost from week low.
Exit Rule:
• Exit the swing trade only if RSI crosses below 60 with a daily candle close.
📌 High Liquid Stocks List
(Suitable for both Cash and Options Segment)
🚗 Auto
• Bajaj Auto
• Bosch Ltd
• Eicher Motors
• Hero Motocorp
• Maruti Suzuki
• TVS Motors
• Tata Motors
🏦 Banking & Financial Services
• Bank of Baroda
• Kotak Bank
• Axis Bank
• ICICI Bank
• HDFC Bank
• IndusInd Bank
• Bajaj FinServ
• Bajaj Finance
• SBI
🧪 Chemicals
• Aarti Industries
• Atul Ltd
• Navin Fluorine
• UPL
• Tata Chemicals
🍫 FMCG
• Britannia
• Godrej Consumer
• Tata Consumer
• DMart
• Hindustan Unilever
• Dabur
💊 Pharma & Healthcare
• Apollo Hospitals
• Alkem
• Biocon
• Divis Labs
• Dr. Reddy’s
• IPCA Labs
• Laurus Labs
• Lupin
• Aurobindo Pharma
• Sun Pharma
• Cipla
💻 IT Sector
• HCL Technologies
• Infosys
• LTIM
• TCS
• Tech Mahindra
• Wipro
⛓️ Steel & Metals
• APL Apollo
• JSW Steel
• Jindal Steel
• Tata Steel
• Hindalco
• L&T
🛢️ Oil & Gas
• Reliance Industries
• Gujarat Gas
• IGL
• MGL
• Tata Power
🏢 Realty
• DLF
• Godrej Properties
• Lodha
• Oberoi Realty
• Phoenix Mills
🛋️ Durables & Others
• Sona BLW (Sonacoms)
• Amber Enterprises
• Bata India
• Crompton
• Dixon Technologies
• Titan
• ACC Cement
• Ambuja Cement
• Ultratech Cement
• Voltas
• Polycab
• Mazdock
• Asian Paints
• Berger Paints
📝 Conclusion
This is the final and simplified setup designed for traders looking for clarity and consistency in trading. No complicated indicators or confusing rules—just clean chart action with momentum logic. Please don't trade Intraday and Index options - its a TRAP. Index and Options are hedging tools used by Sharks to secure their capital. Don't use as a tradable script. You will loose 100%. Focus on what you can achieve with their footprints.
Faraz T
Sr. Equity Research Analyst (Ind, US, UK)
Bullish on INFYYes, Nifty IT has presented a good swing long opportunity on INFY.
Never mind the crash today, the set up looks too promising to not take.
I'm Bullish on INFY with a Target of 1655 for this month series.
Notice how the stock gapped down today and there was immediate buying in the first one hour. This shows Bullish sentiment and this buying has come from a strong Daily price support zone.
P.S. Not a recommendation. Pls do your own due diligence.
Can it be a mini Ending Diagonal in INFY in Wave 1?INFY seems to be completing an Ending Diagonal in Wave 5. We may see a downside ABC correction and then Wave 3, probably.
**This analysis is based on the Elliott Wave Principle.
This analysis is for educational purposes only and not investment advice.
Please consult your SEBI-registered advisor before making any investment decisions. Markets are subject to risk.**
Infosys Ready For 30% Potential UpsideFrom 2000 to 2020
Over period of 20 Years ( Observe The Marked Circles)
Infosys on Monthly TF has Bounced And Rallied Sharply Everytime it has Touched 88 ~ 100 MEMA after Crossing the 20-50 MEMA and has traded in a Parallel Channel which provides a Stable And Solid Structure to Match the Fundamental Growth of the Stock.
Ever Since The Mega Breakout of 2020 after crossing 1.618 Fib Extension of the Rally that began in 2000
We have Upgraded the Channel
We are Near the Trendline and have been consolidating for about 8 Weeks without any signs of Bearishness.
This Prolonged consolidation followed by Trendline break and Historical Higher Monthly TF Support makes good case for Potential Upside of about 30% from CMP 1618 which will gain momentum above 1720.
Targeting 2000~2100 which happens to coincide with Upper End of the Parallel Channel
Look for the Inv Head and Shoulder in Formation in Short term for Swing Trade
Hereby Sharing a Short term Potential Trade with Longer Term Perspective in The Description above.
Buy Above 1638
SL below 1530
TP 1950~ 2000
R:R = 3
Infy Price actionInfosys (INFY) is currently trading around ₹1,608, with recent fluctuations between ₹1,606 and ₹1,629. Over the past year, the stock has delivered modest gains, slightly underperforming broader market indices and the IT sector. Financially, Infosys remains robust, maintaining strong revenues, healthy profit margins, and a debt-free balance sheet. The company continues to reward shareholders with consistent dividends, including a recent payout of ₹22 per share.
Looking ahead, growth expectations for Infosys are muted. The company has projected revenue growth of just 0–3% for the upcoming fiscal year, citing macroeconomic uncertainties and cautious client spending in its key markets. This represents one of the lowest growth forecasts for Infosys in over a decade and reflects broader industry headwinds, including delayed client decision-making and a focus on cost optimization.
Analyst sentiment is generally positive but cautious, with most maintaining a buy or hold rating. Price forecasts for the next year range from ₹1,667 to ₹1,945, indicating limited upside from current levels. Technical analysis shows immediate support near ₹1,579 and resistance around ₹1,633, suggesting the stock is likely to remain range-bound in the near term.
In summary, Infosys is financially sound and offers stable dividends, but near-term growth is expected to be subdued due to global economic challenges and restrained client budgets. The stock is more attractive for investors seeking stability and income rather than aggressive capital appreciation at this stage.
INFOSYS LTD Making higher high trend on daily time frame.Indian IT Sector is witnessing a recovery as most of the IT stocks closed on a postive note. Infosys Ltd being one of the secotral leader is seen making higher highs and higher lows trend on daily time frame as the with above average volume of 42 days (approx 2 Months).
The stock has closed above an important level of 1628 which acted as a hurdle. Now the stocks has suatianed above 1628 level a next resistance level of 1666.40 and 1684.25 seems to be achivabele.
MACD Indicator is alredy trading above zero line which signals postive momentum and alog with it ADX indicator is at 25.95 where +DI is trading above -DI which indicates strenghth in momentum.
let me know your thought in comment below.
Infosys impulse or correction continuation.....
Elliott Wave Analysis:-
Possibility no.1:-
A corretion has been completed. Now an impulse wave has beed arised.
Possibility no.2:-
After the correction of WXY wave there may be a correction continuation which may form WXYXZ. We have to wait and watch the structure formation.
I am not a SEBI registered advisor. Before taking a trade do your own analysis or consult a financial advisor. I share chart for education purpose only. I share my trade setup.
infy formed IH&S pattern on DTFInfosys is displaying a Inverse Head & Shoulder pattern, but breakout has not yet been confirmed. A sustained move above ₹1,635 with strong volume would trigger an upward breakout toward ₹1,750+.
Note : Above view shared only for educational purpose, no any buy or sell recommendations.
Infosys - Bullish Flag and Head & Shoulder Patterns🔍 1. Infosys Current Price Range and Key Levels
Since January 2021, Infosys has been trading in a broad range between ₹1300 and ₹2000, consolidating for over 4 years. Within this range, there are three key support and resistance levels to watch closely:
Support: ₹1300 (major floor)
Intermediate Resistance/Support Zone: ₹1600 – ₹1650
Strong Resistance: ₹2000 (upper bound)
📈 2. Bullish Flag Pattern: A Bullish Flag is a continuation pattern that forms after a strong upward price move "flagpole", followed by a period of consolidation in a narrow downward or sideways channel "flag". It typically signals a pause before the uptrend resumes.
Infosys recently broke out of a bullish flag pattern and crossed above ₹1580 with a strong closing on higher volume, indicating renewed buying interest.
Price is currently trading above the 50-day Exponential Moving Average (EMA), confirming the continuation of the mid-term uptrend.
However, the zone around ₹1650 remains a strong and key resistance level to monitor closely.
🧩 3. Potential Bullish Head and Shoulders Pattern Above ₹1650
Should Infosys break decisively above ₹1650, it is likely to form another significant bullish pattern known as the Bullish Head and Shoulders.
This pattern signals a trend reversal from bearish to bullish and is considered highly reliable.
Trend: Appears after a downtrend or consolidation, signaling reversal
Touchpoints: Three lows – left shoulder, head (lowest point), and right shoulder, roughly at similar levels
Neckline: The resistance line connecting the highs between shoulders and head
Timeframe: Medium-term, often forming over weeks up to 6 months
Volume: Typically higher volume on left shoulder and head formation, volume dips on right shoulder, and surges on breakout
⚠️ 4. Key Concerns in Infosys Chart Pattern
Price-Volume Divergence: During the head formation, volume increased sharply as price fell — indicating strong selling pressure. However, volume was low when price approached the neckline — suggesting weak buying interest to confirm breakout. This divergence signals potential caution.
Resistance Zone: Price remains below the key resistance at ₹1650, which has acted as a ceiling multiple times. A decisive breakout is required to sustain further upside momentum.
⚠️ Disclaimer
This report is intended solely for educational and training purposes and does not constitute investment advice. Traders and investors should conduct their own research and consult financial advisors before making trading decisions.
Infosys Technical Research- Flag and Head and shoulders🔍 1. Infosys Current Price Range and Key Levels
Since January 2021, Infosys has been trading in a broad range between ₹1300 and ₹2000, consolidating for over 4 years. Within this range, there are three key support and resistance levels to watch closely:
Support: ₹1300 (major floor)
Intermediate Resistance/Support Zone: ₹1600 – ₹1650
Strong Resistance: ₹2000 (upper bound)
📈 2. Bullish Flag Pattern: A Bullish Flag is a continuation pattern that forms after a strong upward price move "flagpole" , followed by a period of consolidation in a narrow downward or sideways channel "flag". It typically signals a pause before the uptrend resumes.
📊 2. Infosys Recent Technical Development
Infosys recently broke out of a bullish flag pattern and crossed above ₹1580 with a strong closing on higher volume, indicating renewed buying interest.
Price is currently trading above the 50-day Exponential Moving Average (EMA), confirming the continuation of the mid-term uptrend.
However, the zone around ₹1650 remains a strong and key resistance level to monitor closely.
🧩 3. Potential Bullish Head and Shoulders Pattern Above ₹1650
Should Infosys break decisively above ₹1650, it is likely to form another significant bullish pattern known as the Bullish Head and Shoulders (Inverse Head and Shoulders).
Bullish Head and Shoulders
This pattern signals a trend reversal from bearish to bullish and is considered highly reliable.
Trend: Appears after a downtrend or consolidation, signaling reversal
Touchpoints: Three lows – left shoulder, head (lowest point), and right shoulder, roughly at similar levels
Neckline: The resistance line connecting the highs between shoulders and head
Timeframe: Medium-term, often forming over weeks up to 6 months
Volume: Typically higher volume on left shoulder and head formation, volume dips on right shoulder, and surges on breakout
⚠️ 4. Key Concerns in Infosys Chart Pattern
Price-Volume Divergence: During the head formation, volume increased sharply as price fell — indicating strong selling pressure. However, volume was low when price approached the neckline — suggesting weak buying interest to confirm breakout. This divergence signals potential caution.
Resistance Zone: Price remains below the key resistance at ₹1650, which has acted as a ceiling multiple times. A decisive breakout is required to sustain further upside momentum.
⚠️ Disclaimer
This report is intended solely for educational and training purposes and does not constitute investment advice. Traders and investors should conduct their own research and consult financial advisors before making trading decisions.
INFY | Watchlist | Need to close above 1631
---
### 📈 **Pattern Overview:**
✅ **Cup and Handle Formation**
* **Cup bottom:** \~₹1,307
* **Handle breakout level:** **₹1,631**
* **Current price:** ₹1,631.10 (testing breakout level)
* A breakout above **₹1,631** would confirm the **Cup and Handle breakout**.
---
### 📊 **Key Chart Levels:**
* **Immediate resistance/trigger level:** ₹1,631
* **Potential target:** Measured move suggests potential upside of **\~₹323**, targeting **\~₹1,950–2,000**
* **Volume:** Increasing volume indicates buying interest.
* **RSI breakout:** RSI trendline breakout supporting momentum.
---
### 🔍 **What’s Next?**
* A daily close above ₹1,631 would confirm the breakout, strengthening the bullish outlook.
* If successful, price may target the previous resistance zone around ₹1,950–2,000.
* Watch for volume to stay elevated on breakout for added confirmation.
---
### 💡 **Key Takeaway:**
INFY is at a crucial breakout level of **₹1,631**, completing a **Cup and Handle** setup. If it clears this level decisively, it could open the door to **a move towards ₹1,950–2,000**.
Divergence In trading, divergence refers to a scenario where the price of an asset and a technical indicator move in opposite directions, potentially indicating a change in trend momentum. It's a discrepancy between what the price action suggests and what a technical indicator is showing. This discrepancy can signal a possible trend reversal, making it a valuable tool for traders to identify potential entry or exit points.