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Old 15th February 2012, 08:44 PM
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Default Bearish Divergence in Nifty



An interesting bearish divergence seen here (between the price and RSI).

http://img859.imageshack.us/img859/3412/bakedchart.png

Any ideas as to how long this bull run would last or do you think the upward trend is too strong to bother for such trivial oscillator signals?

PS - Interestingly the volume seems to confirm the uptrend but isn't the high volume due to the fickle-minded FII flows or the even fickler "liquidity driven rally". Thoughts?
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Old 16th February 2012, 01:00 PM
Sachin Asher
 
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It's an indicator made of 14 days of trading data.

I don't think it has any serious long-term implications.

A divergence on the weekly charts would have been more bearish.
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