There is no stopping the Nifty bull, the index has closed at record highs for the second day.
The previous rising trend line serves as a resistance today. Look at the daily RSI… the rounding top has failed in a way; however, the Trix shows a bearish divergence.
It is to be noted that bearish divergence does not work well in a strong bull momentum like the one we are seeing right now. So we wait for an additional confirmation, in the form of either two consecutive weak daily closes or the retreat in the RSI. Additional confirmation would be a break in the Trix below zero.
That would be a strong indicator of major correction ahead. On the downside, strong support is seen at 9000 (psychological support) and 8913, under which 100-DMA is seen offering support around 8700 levels.
The previous rising trend line serves as a resistance today. Look at the daily RSI… the rounding top has failed in a way; however, the Trix shows a bearish divergence.
It is to be noted that bearish divergence does not work well in a strong bull momentum like the one we are seeing right now. So we wait for an additional confirmation, in the form of either two consecutive weak daily closes or the retreat in the RSI. Additional confirmation would be a break in the Trix below zero.
That would be a strong indicator of major correction ahead. On the downside, strong support is seen at 9000 (psychological support) and 8913, under which 100-DMA is seen offering support around 8700 levels.
