- The positive divergence of force index in reliance industries in February gave a good rally from 970 range to 1150.
- But during its journey to 1150 force index has formed a negative divergence.
- This negative divergence makes it even tougher for reliance to cross 1150.
- Take long position only on a convincing break of 1150.
thank you
take care
- The ovals shows how smart money gets out of the market
- We already had one round of profit taking last week
- But fridays price action is an indication that there is some more upmove left.
- The channel is getting converged so a false break out toward the weekly channel top is possible.
- We will see the second round of profit taking at the weekly channel top if we get there.
- The daily stochastic, cci is in overbought status so look for negative divergence when it goes pass 5400.
