A settling  Zone has been observed!

In this bull run, it has been observed that near about every week Nifty is breaking high and going up but now there are some divergence observed technically along with statistically also. Let me clear to you that divergence does not always mean the reversal, sometimes it means breather after the run also. 

Lets, Discuss the technical  Chart first...

 Now, As a chart analyst, one can easily identify the divergence in the price-action with RSI. 
Here we can see a Nifty future has taken support around 18100 level. That means, If the index future breaches this level then it can see a drop of around 250 to 500 points. Practically that is quite possible these days with increasing VIX  maybe by coming sessions. Once again, if there is uncertainty then only the momentum for drawdown may create but we cannot stop the profit booking.
So, Let us discuss numbers.

I have a Price Divergence Analysis (PDA) which is a continuous process. Where the closing data of the future index is compared with the Weekly and monthly open/close: hi/lo.

Now, it has been observed that there is a reversion of weekly and monthly data and both have broken the pattern.

So, from here my findings assured me through both the analysis that the probability of going northwards is less.

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A dynamic professional with around 22 years’ rich experience in Marketing, Business Development and Business Analysis. But above all, a passionate Capital Market Analyst and option trader for last 20 years with in NSE/ BSE and cryptocurrencies.