09.05.2023 02:00 PM
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.
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*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
