Jamna Auto – Supply Zone Breakout, But RSI Divergence Flags Caution

1. Breakout From a Major Supply Zone Price has successfully broken above the strong multi-year supply region around ₹108–123. This zone had rejected price multiple times in the past, making the breakout notable. 2. Strong Upward Momentum in Price The weekly candles show sharp upward movement, confirming strong demand returning after a long correction. 3. But… RSI Shows Bearish Divergence RSI made a lower high, while price made a higher high → a classic bearish divergence. This often signals momentum weakening, increasing the probability of a near-term pullback. 4. Price Entering a High-Supply Cluster The broad yellow area highlights a region where historical supply has repeatedly emerged. This increases the importance of observing price behaviour here over the next few candles. 5. Volume Not Accelerating Yet Breakout has happened, but volume has not expanded significantly, a sign that buyers may not be aggressive at this level. 📌 Summary View ✔ Strong breakout from a major supply zone ✔ Price showing a sharp recovery ⚠ RSI bearish divergence suggests buyers may lose momentum ⚠ Stock has entered major supply area again This combination calls for close monitoring, especially if price loses strength near resistance. 📢 Disclaimer: For educational and technical analysis purposes only; not investment advice. 👤 Rajneesh Sharma – SEBI Registered Research Analyst (INH000020332)