RSI Divergence on BHEL weekly chart ??


Well-Known Member
As per technical analysis, I guess the answer is yes. The markets are quite oversold, and hence a bounce (as is seen in the index). However, it is important to keep in mind that technical analysis or any investment theory or strategy is not cast in stone and is not infalliable. There are a couple of forthcomming important events that will decide the direction of the market. One is ofcourse is the Greek election results, second is the question if Germany will agree to loosen its monetary policy and help bail out the banks. Any U.F Federal Reserve statements on easing can sway the market. Importantly for us, the RBI may cut CRR and/or interest rates. All these factors are hugely important and will determine the direction and the momentum of the market. In my opinion, technical trends in the charts will be less important than the outcome of any of the above. We can expect volatile movement of the markets in any direction.
thanks for replying I completely agree with you... So many events lined up market will show its full swing. .. Now in this scenario few scrips will stand out and lets see if bhel is one of them.. Btw I have taken a call option just to test same :)