18.05.202316:05 Forex Analysis & Reviews: New highs for DAX

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Black lines- bearish RSI divergence

Green line- support

DAX is trading around 16,085 after making a new higher high at 16,214 earlier today. Short-term trend remains bullish as price continues making higher highs and higher lows. DAX has broken the recent sideways trading range it was in since March. However the new higher high in price was not followed by a higher high in the RSI. The RSI has provided a new lower high. This bearish divergence should not be ignored. It is not a reversal signal but a warning that the new higher high might not be a true bullish signal. Support remains key for the near term at 15,850. Next support level is at 15,690 and this is the most important support.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.