Arrows to point out the divergence and it was a while ago..but looks like it caught up with DG.
Hanging on support right now..if it breaks through support, well..just be careful if you are in this. Strong stock for sure.. A candle tail already reached through support but quickly snapped back above it..
There is also a big red engulfing candle up there to give you a warning this may pull back..so you have a funky multiple top, a bearish RSI divergence and an engulfing candle. I guess it is not like it did not warn me..lol...warnings there to wait and not buy the dip..
Sometimes a technical indicator will disagree or “fight” with the actual price action of the stock or index you are analyzing. These “disagreements” can be very useful. A divergence appears when a technical indicator (usually an oscillator) begins to establish a trend that disagrees with the actual price movement.
Just an observation and not a recommendation
Hanging on support right now..if it breaks through support, well..just be careful if you are in this. Strong stock for sure.. A candle tail already reached through support but quickly snapped back above it..
There is also a big red engulfing candle up there to give you a warning this may pull back..so you have a funky multiple top, a bearish RSI divergence and an engulfing candle. I guess it is not like it did not warn me..lol...warnings there to wait and not buy the dip..
Sometimes a technical indicator will disagree or “fight” with the actual price action of the stock or index you are analyzing. These “disagreements” can be very useful. A divergence appears when a technical indicator (usually an oscillator) begins to establish a trend that disagrees with the actual price movement.
Just an observation and not a recommendation
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There has to be a buyer for every seller..confusing until I thought hard about it (I do not do that often..lol) I guess it is a supply and demand thing. My thoughts: There has to be buyers to buy every share that a seller sells, just supply is up and demand is down so price goes down, so the seller takes less I suppose. If there is more demand than supply then the seller demands more so the price goes up. A chart is just an Xray of supply and demand.