The stock showed a positive technical divergence to the market yesterday by holding above its recent pivot low, while the indices all broke down through recent ranges.

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Technical analysis provides some clues as to how the divergence may be resolved.

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In the past few years, there have been a number of articles about divergence analysis that I feel do not allow it to be judged correctly as a technical tool.

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Of course, in very strong bull or bear markets, we must rely on technical indicators that can stay with strongly trending markets, as momentum indicators like the Moving Average Convergence Divergence (MACD) indicator or Relative Strength Index (RSI) will top or bottom out well ahead of prices.

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