Expecting a small correction in the AUTO SECTOR
CNXAUTOI am expecting a small correction in the Auto sector. It is because the price is facing resistance on the upper trendline. The MACD indicator is showing a small divergence as the MACD Line didn't went up when the price went up and giving random crossovers. It is moving in a range but the prices went up in past one month.
The same is with the RSI, there is also a small divergence as the RSI is moving in a range and didn't went up with the prices in the past one month indicating loosing momentum.
I am expecting the prices to correct and test its 50 EMA levels and extremely it could test the lower Trendline. But not expecting a Bear trend or a trend reversal, as the Sector has outperformed NIFTY 50 for the last 1 year. It is a good time to book partial profits and re enter at lower levels.
Disclaimer : It is my own view and analysis. It is for educational purposes and not any type of Recommendation, call or a tip.
Nota
Correction did come but it was not as per my expectations. I expected more.
Penafian
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