NIFTY 50 to witness mild rally due to positive divergence

5 thg 9, 2019

Though the Index has witnessed first resistance at 10918 but there is a high possibility that dip buyers will force it to breach this level. This is due to the formation of a positive divergence pattern with price and RSI indicator in a daily time frame chart. The pattern signifies the correction in Nifty prices albeit RSI has been consistently moving upwards from oversold territory. Secondly, the closing above the first support level will be crucial for favoring this pattern.