Big bearish divergence on Clover Industries Ltd
Between October 2018 and March 2019, JSE:CLR went on a strong bullish run. Since then, the stock has been running flat.
More interestingly, though, a big bearish divergence has formed between price and the MACD while also breaking the upward trendline. The Slow Stochastic indicator is also trading well below the 50 level at 34. This is indicating weakness in price and adds to the bearish signals.
The stock is thus looking good for a short trade but I would like to see a close below support at R22.00 before I would recommend opening the short trade.
More interestingly, though, a big bearish divergence has formed between price and the MACD while also breaking the upward trendline. The Slow Stochastic indicator is also trading well below the 50 level at 34. This is indicating weakness in price and adds to the bearish signals.
The stock is thus looking good for a short trade but I would like to see a close below support at R22.00 before I would recommend opening the short trade.
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