Stock market: DAX index - "Short-term trend remains bullish as price continues making higher highs and higher lows"
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Black lines- bearish RSI divergence
Green line- support
DAX is trading around 16,085 after making a new higher high at 16,214 earlier today.
Short-term trend remains bullish as price continues making higher highs and higher lows. DAX has broken the recent sideways trading range it was in since March. However the new higher high in price was not followed by a higher high in the RSI. The RSI has provided a new lower high. This bearish divergence should not be ignored. It is not a reversal signal but a warning that the new higher high might not be a true bullish signal. Support remains key for the near term at 15,850. Next support level is at 15,690 and this is the most important support.
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