|Today's Chart of the Day was shared on Twitter by
Abhishek Chinchalkar (@abchinchalkar).
It's a Daily Candlestick chart of Reliance Industries for the past one year. Abhishek points out that the price turned down after touching the 200% retracement level of the Fibonacci extension of the December '19 - March '20 decline.
Further, a bearish momentum divergence has formed over the past two months. A bearish momentum divergence occurs when prices in an uptrend make a Higher-high, while RSI makes a Lower-high. When this happens, it indicates that buyers are losing momentum and that prices could mean-revert lower. Price confirmed that divergence by closing below the July high. Will momentum bring further decline for the largest Nifty 500 constituent, or is this a logical place to retest the prior top?