DAX under pressure as it challenges key support trend line
May 24, 2023 1:24 pm
Black line – resistance
Red line- bearish RSI divergence
Green line -support trend line
DAX is down for a third day trading around 15,865. Price is under pressure challenging the green upward sloping support trend line. Price made recently a new higher high and as we mentioned in our previous posts, the RSI provided a new bearish divergence and an important warning for the bulls. If the bearish RSI divergence is combined with a break below the green support trend line, we will get a new stronger bearish signal and most probably a trend reversal signal. For now we do not have confirmation of a reversal. If price fails to hold above the green trend line, we should expect more downside towards 15,000.
The material has been provided by InstaForex Company – www.instaforex.com
Black line – resistance
Red line- bearish RSI divergence
Green line -support trend line
DAX is down for a third day trading around 15,865. Price is under pressure challenging the green upward sloping support trend line. Price made recently a new higher high and as we mentioned in our previous posts, the RSI provided a new bearish divergence and an important warning for the bulls. If the bearish RSI divergence is combined with a break below the green support trend line, we will get a new stronger bearish signal and most probably a trend reversal signal. For now we do not have confirmation of a reversal. If price fails to hold above the green trend line, we should expect more downside towards 15,000.
The material has been provided by InstaForex Company – www.instaforex.com
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