April 11, 2010

Reliance Industries force index negative divergence

  • 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
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Nifty Daily Chart technical analysis till 9th april

  • 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.