Shriram Pistons – Strong OBV Support but RSI Divergence Signals Caution Near Resistance

1. Rising OBV Indicates Strong Accumulation OBV continues to trend upward, showing persistent accumulation even as price moves in a choppy upward structure. This suggests that underlying demand remains healthy — a positive sign for medium-term strength. 2. Price Approaching Major Resistance Zone Price is now testing the upper boundary of a rising channel as well as a multi-touch horizontal resistance. Repeated rejection from this zone in the past makes it an important level to monitor. A decisive weekly close above this resistance would confirm bullish continuation. 3. Unresolved RSI Bearish Divergence RSI is forming lower highs while price is making higher highs — a classic bearish divergence. This usually signals weakening momentum despite rising prices. While not a reversal signal by itself, it warns of: Potential pullback Short-term profit booking Slower upside movement unless momentum improves 4. Structural Trend Still Intact Despite divergence, the broader trend remains constructive: Price continues to respect the rising 30-week SMA Higher lows remain intact OBV shows accumulation Volume spikes are seen on up-moves This suggests that the primary trend is bullish, but momentum needs to catch up. 5. What to Watch Next 🔎 Key Levels: Breakout zone: 2850–2900 Support zone: 2450–2550 📈 Bullish Trigger: A strong close above 2900 with rising RSI (ideally >65) may open the next leg of the uptrend. 📉 Bearish Trigger: Failure to clear resistance + RSI weakening may lead to a retest of the mid-channel or 30-week SMA. 📢 Disclaimer: This analysis is for educational and technical study purposes only. Not investment advice. 👤 Rajneesh Sharma – SEBI Registered Research Analyst (INH000020332)