SubscribeMomentum Stock – Credicorp (BAP)
Momentum Stock – Credicorp (BAP)
If you have not exited your position in BAP, now is certainly the time to do so. Although I have shown you several percentage points on this trade, do not let greed get the best of you.
Divergences in the Relative Price Index against price are a warning in any climate that the winds of change may be soon upon us. For example, I brought up a one year chart and found two negative divergences. As you may recall from an earlier post, this is when the RSI is trending down while the price continues to climb north.
Source: Bigcharts
In the chart above, you can see how BAP is currently struggling to push higher while the RSI is falling. Divergences do not occur often so it is better to be safe, re-evaluate, and live to fight another day in the market.
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