Dax index is under pressure today. Price is trading near 2023 highs.as it continues making higher highs and higher lows. Support remains key at 15,700-15,685. In previous posts we talked about the warning by the RSI oscillator. The RSI is not making higher highs as price does. The RSI continues to provide lower highs suggesting a weakening up trend. The bearish RSI divergence is only a warning and not a reversal signal. If the bearish divergence is combined with a break below 15,700 then we will have increased chances of a short-term trend reversal. At current levels we prefer to be neutral if not bearish DAX as we see there is limited upside potential.
The material has been provided by InstaForex Company – www.instaforex.com
Black lines- bearish RSI divergence
Green line- short-term support line
Dax index is under pressure today. Price is trading near 2023 highs.as it continues making higher highs and higher lows. Support remains key at 15,700-15,685. In previous posts we talked about the warning by the RSI oscillator. The RSI is not making higher highs as price does. The RSI continues to provide lower highs suggesting a weakening up trend. The bearish RSI divergence is only a warning and not a reversal signal. If the bearish divergence is combined with a break below 15,700 then we will have increased chances of a short-term trend reversal. At current levels we prefer to be neutral if not bearish DAX as we see there is limited upside potential.
The material has been provided by InstaForex Company – www.instaforex.com
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