📉 ELGI Equipments – Bearish Divergence Near Resistance

🚩 1. Rising Wedge + Resistance Confluence The stock has been climbing inside a rising wedge formation, now testing the resistance zone around ₹592–₹615. This level also aligns with a breakdown zone from the previous trend, increasing the possibility of supply pressure. 🚩 2. RSI Bearish Divergence While price made a new swing high, RSI failed to confirm it—creating a clear bearish divergence. This is a classic early signal of momentum weakness, especially after a strong upmove. 🚩 3. Parabolic Rally with No Base Price rallied nearly 20% in just a few days without a retest of the recent base (~₹528). Such vertical moves can invite fast profit-booking if follow-through demand dries up. ⚠️ Short-Term View “Exhaustion signs with wedge resistance + RSI divergence suggest caution at highs.” 📉 Support zones: ₹560 (interim), ₹528 (major) 📉 A breakdown below the wedge trendline would confirm the short-term reversal. Wait for confirmation, but fresh longs carry poor risk-reward here. Avoid chasing at resistance. 📢 Disclaimer: This is for informational purposes only. Nothing herein constitutes a buy or sell recommendation. I may or may not be holding a position in the stock mentioned. 🧑‍💼 Rajneesh Sharma is a SEBI-registered Research Analyst (Reg. No. INH000020332). 📄 Investments are subject to market risks. Read all related documents carefully before investing.