04.05.202314:26 Forex Analysis & Reviews: Technical analysis on DAX for May 4th, 2023.

Long-term review

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Black lines- bearish RSI divergence

Green line- horizontal support

DAX is challenging the key short-term support at 15,700. As we explained in our previous analysis, DAX is vulnerable to a move lower. The RSI has so far warned bulls through the bearish divergence. Price is under pressure again today with risk of breaking below support and starting a pull back. A break below 15,700 would provide us a new bearish signal. Resistance remains key for the near term at 15,910. After a multi month upward trend, maybe it is time for stocks to take a break and we witness a major pull back. Since the major low from September of 2022, price continues making higher highs and higher lows, but each upward movement is smaller than the previous one. Traders need to be very cautious as current market conditions justify a correction towards 14,600. Will the old saying of 'Sell in May and go away' come true for DAX this year?

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