Nifty - divergence ? Well .. not convincing !

The Nifty movement of today again was a great one for intraday traders. But many blog readers / participants are asking me about the RSI divergence that they are seeing on the daily Nifty charts.

Well , I perception is that a divergence should have the characteristic of a panic fall after which things should look up again.



Well, according to my analysis (which is based on certain advanced indictors- not shown here) , the current divergence on RSI on daily price chart of Nifty may be one which may turnout to be a false one.

Corrective upmoves / short covering is being witnessed in intraday, which is not being sustained. However the Nifty being near its 200 EMA is the only 'hope' for bulls!.

Long positions must have stops placed near 4725.

A close below 4700 now should suggest further weakness..

Happy (intraday) trading !

CA Rajiv D Khatlawala
ValueTrade Academy Pvt Ltd.