DAX Analysis April 2015 (D)
Created on Wednesday, 01 April 2015 23:26
Written by Austin Galt
We are looking for the final high to the bull market and I think we are very close. Let’s take a look using the daily chart.
DAX DAILY CHART
We knew from the last analysis in March that price was likely to head up further as the lower indicators were too strong for a final high. Price has subsequently traded up to 12219.
This high has already set up bearish divergences on the Relative Strength Indicator (RSI) and Stochastic indicator while I would like to see the final high be accompanied by a triple bearish divergence. Let’s see.
The Moving Average Convergence Divergence (MACD) is sill yet to show a bearish divergence but I would like to see one set up before calling the final high.
The move down from the recent high looks like a simple ABC correction and price has now headed back up and has new highs in its sights.
The Parabolic Stop and Reverse (PSAR) indicator now has a bullish bias after busting the dots on the upside yesterday.
Summing up, I think we are very close to the final high. I suspect we will see one last marginal high above the March high which would set up a false break high.