An interesting structure is forming in Bence $POL chart.


While price continues to make new lows, RSI is making higher lows on the momentum side.
In other words, momentum is not declining at the same rate as the price decline.
In technical analysis, this is generally called positive divergence.
So there is still selling pressure, but its strength is not increasing like before.
At the same time, price has been moving within a descending squeeze structure for a long time. These types of structures can sometimes form toward the end of a trend.
This alone is not a guarantee of a reversal.
But sometimes in the market, the first thing that changes is not price, but momentum.
That's why I think these types of divergences are often worth monitoring.
POL-0.33%
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