Rico Auto – Strong Bounce with Volume, But RSI Showing Bearish Divergence

1️⃣ Recent Volume Expansion A clear pickup in buying volume has emerged, supporting the recent upward move. This suggests renewed interest at lower levels. 2️⃣ Bounce From Long-Term Trendline Price has reacted strongly from the rising trendline (green), maintaining its larger structure of higher lows. This trendline continues to act as a key support zone. 3️⃣ Breakout Above Falling Trendline The stock has broken above the red falling trendline, shifting the medium-term momentum to neutral-to-positive. 4️⃣ Major Resistance Tested Price is now approaching an important resistance zone (110–125). Historically, sellers have been active here, so behaviour around this region will be crucial. 5️⃣ RSI Bearish Divergence While price made a higher high recently, RSI did not — creating a bearish divergence. This indicates momentum is not fully supporting the price move and may lead to: short-term pullback or sideways consolidation before any next leg. 📌 Structure Summary Trendline support intact Volume supporting the rise Short-term momentum weakening (due to RSI divergence) Needs a strong close above resistance for clean continuation Overall, the setup remains constructive but requires caution near resistance due to momentum weakness. 📢 Disclaimer: For educational and technical analysis purposes only; not investment advice. 👤 Rajneesh Sharma – SEBI Registered Research Analyst (INH000020332)