DAX: Strong selling expected.

8 Jan

DAX has turned bullish again on the 1D technical outlook (RSI = 61.214, MACD = 155.000, ADX = 20.016) as it is posting the strongest daily candle of the last 30 days. We consider this move to be counter trend as the Bearish Divergence that is being staged on the 1D RSI looks like the one in late February 2023. That one also posted a counter trend rise on February 24th that tested the Resistance and then pulled back by -7.83% to the 0.618 Fibonacci level.

Consequently we are shorting the current rally and will target the 0.5 Fibonacci level (TP = 15,800), which is slightly under the S1 level and the 1D MA200.

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