FX.co ★ Short-term technical analysis on Dax for December 9th, 2022.

Black line- bearish Divergence

Blue line- horizontal support

Red lines- bullish channel

DAX index is trading around 14,350. Price recently broke out of the bullish channel and combined with the fact that the RSI is providing bearish divergence signals, there are increased chances of a turnaround. Support is found at 14,170 and a break below this level will signal the start of the pull back. Until then we can see new higher highs by the index but at the same time we will need to keep an eye on the RSI as well. A new bearish divergence will increase chances of a reversal.