Negative Divergence!!!

Hi All,

Markets are likely to open on a Flat to Negative note, tracking global markets, SGX Nifty is trading @ 8842 (-2 Points)

Personal View : Mayur Shah Education Instructor.

As mentioned in the last Update about Symmetrical Continuation Triangle formation on Daily chart which got a Breakout when Nifty broke 8660 – 8700 levels.

Yesterday Nifty went above 8800 creating a high of 8819 but was not able to close above the physiological level 8800 (Close @ 8786).

Up move will continue as there is not selling signal on daily charts, However on Hourly charts Nifty gave Classic Negative Divergence which will trigger when Nifty breaks 8770 – 8760 (Immediate support) with Supports nearby 8730 – 8680 – 8640 and resistance can be seen at 8820 – 8840.

Areas to watch out

Supports @ 8700 – 8660 - 8620

Resistance @ 8760 – 8800 - 8840

Bias for Nifty remains positive until Nifty stays above 8700 – 8640, Buy on dips will be advisable.

Trade with Strict stoploss and with Proper Money Management.

Regards,

Mayur S.