Ola Electric – Bullish Divergence + Trendline Break | Early Reversal Signal ⚡

This is a textbook bottoming structure, where multiple signals are aligning for a potential trend reversal after a prolonged downtrend. Technical Structure (Elliott Wave Perspective) The stock has been in a sustained downtrend (corrective phase) since listing highs, forming lower highs and lower lows. This entire move can be interpreted as a corrective Wave (A-B-C) or an extended bearish cycle. Now, price is showing signs of: Base formation near ₹25–₹30 First higher low formation Attempt to break the falling trendline This hints at a possible transition from accumulation → early impulsive phase (Wave 1). MACD Bullish Divergence (Key Highlight) This is the most powerful signal on the chart: Price made lower lows MACD made higher lows This is a clear bullish divergence, indicating: Selling pressure is weakening Momentum is shifting before price reacts Now, we are also seeing: MACD crossover Histogram turning positive This confirms momentum expansion starting Trendline Breakout The falling trendline (red) has been respected for months Price is now attempting a decisive breakout above it A sustained move above this level typically marks: → End of downtrend → Beginning of trend reversal phase Key Levels to Watch Immediate Resistance: ₹42–₹45 Major Resistance: ₹55–₹60 Support Zone: ₹30–₹32 Upside Potential 🎯 If breakout sustains: Short-term: ₹50–₹55 Positional move: ₹65–₹75