Today's Chart of the Day was shared on Twitter by Seby Joseph ( @josephseby78). It's the daily line chart of Nifty 500 over the past five years with the Accumulation Distribution Line in the top pane. Accumulation Distribution Line (AD line) is a volume-based indicator that helps to determine underlying trends or anticipate reversals when it diverges from the security price.
Seby points out that the AD line is making a new high before the index. It confers intrinsic strength, which could elevate the price. As discussed earlier, the high of Nifty 500 coincides with the Fibonacci extension level of 161.8% from January '20 - March '20. It would be interesting to see the price action at this level after 2.5 months of consolidation.
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