3.618 and falling trendline are in close proximity.Negative divergence on indicators is clearly visible. I won't short till the time it closes below support line and ema.
The index has retraced 0.618. Secondly wave V too is at 0.382 extension. Still there is no weakness but the speed might slow down. However close above 0.618 levels may keep the bulls busy.
On weekly Time frame we can see a Hanging man Formation with clear rejection at major resistance level.
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Comparing Nifty Auto to Nifty 50 on a weekly timeframe. There’s a bullish divergence between price and momentum. I’m looking for Auto stocks that have the same pattern along with failed breakdowns... What’s YOUR favourite Automotive stock?
As we can see Nifty Auto is trading in a rectangle pattern. A strong support is placed at 5000 level making it a psychological level as well. Nifty Auto seems to be moving in a sideways pattern.
1. A sustainable breakout above 5500-5600 will give this index a new leg.
2. The current Bollinger Band trend shows that the volatility is reducing.
3. RSI retraced from...
CNXAUTO
