Mentorship InstaView 17 Aug’21: Googly

 Nifty View: Seventh consecutive positive daily close from the benchmark Nifty with today’s 40 points up move. Yesterday's “Shooting Star” pattern in the intra-day charts played out at the first half of today’s trade followed by a high-momentum bounce back and we are now back to yet another new life-high. Now, it's these kinds of days that start to create price-momentum divergences. Because price corrects relatively slower compared to the following rally. However these divergences do not necessarily lead to reversals, they are signs of exhaustion which only the price behaviour confirms. At the current juncture, today’s low of 16,483, plays the role of short term supports, which essentially means that the index has to break and stay below 16,500 for any significant follow-through weakness. Till then, maintain a bullish bias and look for long trades only.

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