IEX: Piercing Line Meets Positive RSI Divergence

(daily) has fallen from the late-July high near 133 to the 100 area, a decline of about 25%. The latest candle is a Piercing Line, a two-candle bullish reversal pattern in which a green candle opens lower and closes above the midpoint of the previous red candle. It suggests buyers stepped in near the lows. RSI adds a second layer. It has been making higher lows, now at 38.21, while price made a lower low. This positive divergence points to selling momentum fading. Both signals still need confirmation, since the stock remains in a downtrend and below its recent swing highs. Resistance: 104-105, then 108-109. Support: 99.5, the pattern low. Follow-through above 104-105 in the coming sessions, and whether the low holds, will be worth observing. A candlestick reversal with an RSI positive divergence is a stronger signal than either alone, but follow-through is needed before the trend changes. Disclaimer: This is for educational purposes only and is not investment advice. Please consult your financial advisor before making any investment decisions. SEBI Registered Research Analyst — INH000025212.