Corrective outlook on the DAX continues to build 09/11/2017 #HIGHTRADE
The near term corrective outlook is still building and the legacy of the big bearish engulfing candle from Monday still looms large.
Yesterday’s session that closed entirely flat after trading lower for much of the session, whilst the market has pulled lower again today.
This suggests that the buyers are struggling under the corrective pressure.
- The near term level to watch on the downside is 13,311 whilst Monday’s low at 13,335 is also now being challenged.
Momentum indicators are deteriorating again, with the Stochastics on the brink of a sell signal confirmed, the MACD lines on the brink of a bear cross and the RSI back below 70.
Watch for the Stochastics and MACD lines confirming their signals whilst the RSI dropping below 60.
These would then be a big indication for a deeper correction.
For now this is a near term unwinding drift but could turn into something more significant.
- The uptrend support is today down at 13,190.
- Yesterday’s reaction high at 13,418 is initial resistance, with the hourly chart showing a small 20 tick band of resistance between 13,400/13,420 lending a band of near term overhead supply.