Red line - neckline resistance
Blue lines- bearish divergence
DAX remains under pressure and vulnerable to more downside. As we mentioned in our previous analysis on Dax, the index is in bearish trend as long as price is below the neckline resistance (previous support) at 14,800. DAX is approaching the 50% Fibonacci retracement and March lows. Failure to hold above this level will push price lower towards the 61.8% retracement level. The RSI has not provided yet a bullish divergence to justify a bigger trend change to the upside, that is why we continue to consider each bounce as a selling opportunity.
