Thursday, July 16, 2009

NF Hourly... Hidden Divergence!!!

Not getting into the HNS discussion here (for that the weekend post still holds water), just a small observation on the hourly chart. Below is the hourly chart of the Nifty Futures. As one can see, we seem to have made a Hidden Negative Divergence with the Price making a Lower High and the Indicators below making a Higher High! This Divergence fails if NF takes out 4330/50, till then we assume it’s in play.





Speaking of play any weakness can be shorted with 4280/4300 stop but then again the flip side is that we have multiple supports lined up just below the price (see the ellipse)! This robs all the fun coz this makes shorting very frustrating! NF can again give swift moves on either side if it breaks down at 4150 or breaks out from 4350!



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