DAX Update April 2015 (D)
Created on Thursday, 16 April 2015 23:24
Written by Austin Galt
The DAX has traded as outlined in recent analysis and it looks like we may well have the final high in place. Let’s take a look using the daily chart.
DAX DAILY CHART
Price hit a high at 12390 last Friday 10th April. This looks to have set up a false break top above the previous swing high level which is denoted by the upper horizontal line.
This high was accompanied by a triple bearish divergence in both the Relative Strength Indicator (RSI) and Stochastic indicator while the Moving Average Convergence Divergence (MAC) indicator shows a bearish divergence and now has a bearish bias.
The Parabolic Stop and Reverse (PSAR) indicator now has a bearish bias after price busted the dots on the downside with authority today.
The downtrend will likely be confirmed once price breaks below the previous swing low level which is denoted by the lower horizontal line and stands at 11619.
Once the bear trend is confirmed we can investigate further likely levels for bear market to end.