DLF...An Example Of Hidden Negative Divergence!!!

This is purely an academic post of a setup that’s already been spent! I am a person who likes to trade divergences now and then; shuffling through my charts I came across DLF, which made a beautiful Hidden Negative Divergence. Look at the shaded area and you will see while the price made a lower high, all the three indicators made a higher high, the price also confirmed by failing to hold on the MA breakout and reversed.

Having discussed what’s already happened let’s see if we have any trade in DLF, if you compress your charts to show two years of data you will see that DLF is at important demand area which has held out quite a few number of times. Also with the MACD showing some positive divergence and the indicators making small double bottoms, a very low risk buying opportunity is to buy now (250/55) with a stop near 240/245 or a better trade is to play safe and buy if it breaks above 258/60 for a target of 290/300!!!