DAX - Bearish Divergence Warning

by Tim Straiton
Friday 1st September 2023

Current level of DAX stock index is 15938 and trading marginally above the rising 40 week moving average of 15483. The extremely low Bollinger Bandwidth reveals the lack of directional movement in this market, while bearish divergence on the 14 week relative strength index should warn us of a pending move to the downside.

A weekly close below the Fibonacci 23.6% retracement level based on the entire 12114 to 16460 range traded since September 2022 would open downside targets of 14805 (38.2% retracment from the high) and thereafter 13778 (61.8% retracment from the high).


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