Marico (Will a Divergence lead to a fall from current levels ?)
Marico has formed a beautiful trend line in the daily timeframe. While the chart was forming a higher high the MACD indicator was forming a lower high indicating a divergence between the price movement and the MACD indicator. Currently the price is testing the trend line yet again and the MACD line has crossed the signal line from above indicating a selling pressure incoming, however we need to keep in mind that both the line are still above the 0 levels indicating a long term positive momentum which is very much indicated by the chart.
A breakdown from the trend line and breach of the nearest support should ideally lead to a fall in the range of 350-340 levels or even further. Market momentum will have a role to play as well and looking at the volatility it would be wise to keep a trailing stop.
Which side will you be betting on ?
Do share any views or criticism if possible.
A breakdown from the trend line and breach of the nearest support should ideally lead to a fall in the range of 350-340 levels or even further. Market momentum will have a role to play as well and looking at the volatility it would be wise to keep a trailing stop.
Which side will you be betting on ?
Do share any views or criticism if possible.