Dolat Algotech – Bullish RSI Divergence but Major Resistance & SMA Rejection Ahead

1. Bullish RSI Divergence Visible RSI has formed a clear bullish divergence — price made lower lows while RSI made higher lows, indicating early momentum improvement. This is often a precursor to a reversal attempt, especially from oversold territory. 2. Price Near Strong Resistance Zone Price is now approaching a major horizontal resistance around the ₹86–₹90 zone, where multiple earlier reactions have occurred. This area has historically acted as a supply zone, so sellers may attempt to defend it. 3. Rejection From the 30-Week SMA Even after a surge in volume this week, price has failed to close above the 30-week SMA. This indicates that medium-term trend is still not fully supportive, and bulls must regain control above the moving average to sustain upside momentum. 4. Falling Trendline Test in Progress Price is also testing the falling trendline from the previous swing highs. A clean breakout above both the trendline + 30 SMA + resistance zone would add strong confirmation for trend reversal. Until then, this remains an early-stage setup. 5. Volume Spike Yet Unconfirmed A large volume spike is visible, suggesting fresh participation. However, without a follow-through candle above the key resistance cluster, the move remains in the "attempt" phase, not yet a confirmed breakout. Overall View The chart shows: ✔ Bullish RSI divergence ✔ Volume support ✔ Testing trendline resistance But also: ❗ Rejection from 30-week SMA ❗ Strong resistance zone overhead ❗ Breakout not yet confirmed A weekly close above resistance + 30 SMA would improve the structure significantly. Until then, caution remains warranted near supply zones. 📢 Disclaimer: For educational and technical analysis purposes only; not investment advice. 👤 Rajneesh Sharma – SEBI Registered Research Analyst (INH000020332)