The counter has been in a very strong uptrend. Even during the sell off the counter continued to swim against the tide and kept posting new all time highs. However the latest all time high posted by the counter the previous day seems to be lacking conviction for the following reasons.
1. The counter has formed higher high but RSI has failed to do so. In other words RSI has formed lower low. In technical parlance such RSI set up is called Negative Divergence of RSI and we see the same on a daily chart. Negative Divergence of RSI is the signal of possible reversal of the existing trend.
2. MACD Histrogram and Stochastic too shows the Negative Divergence.
3. The recent top was formed with bursting volumes indicating "Blow-off" move which again is the sign of possible reversal.
So in view of the above mentioned observations we can conclude that the counter may witness reversal in a near term. The Born Tough counter may find it tough to sustain at higher levels.
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