Power of divergence & channel - Asian Paint's Fall

12 בנוב׳ 2019

In this chart I have plotted two channels the first channel (RED) is more relevant as it's upper border has proved itself as supply zone. The other one (green) is a flat channel which is tested many times when the stock tried to break above the 1826-1835 range.As per these two channels, 1768 is the first level of support from the first (red) channel. if it breaks this support then we can see Asian Paint around 1730-1720 which is the support of second channel.Negative Classical divergence on 7 November already give the entry at 1798 for the short side.